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Annual report / Arizona Corporation Commission

Arizona Corporation Commission Annual Report 1912-1913

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. . . OF THE· . . . .. . • · 1
Arizona.Corporation Commission I
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- 'A"Q. Artz~na,9 ta-~ Press- ~~ PhoeDU, Aruon'Cal IOt-I* 18~1,9~1 191JII
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First Annual Report
,• .. ,.
State of Arizona
for the period
February 14, 1912 to December 1, 1913
Published by Board of Control. by authority of Chapter
. 53. Session Laws of the Second Special Session
of tile First State Legislature
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First Annual Report of the
Arizona Corporation Commission
ARIZONA CORPORATION . COMMISSION
• Phoenix, Ariz., December 1, 1913.
. Hon. Geo. W. P. Hunt, Governor.
Phoenix, Arizona.
His Excellency: We have the honor to submit the report of the
Arizona Corporation Commission for the period beginning February 14,
1912, and ending December 1, 1913.
· It is obvious that the work performed by this Commission is increasing
daily, and probably no other railway or corporation commission in the
country has as great and varied an amount of duties to perform.
We have sub-divided the report herein, not only as to the duties of this
Commission performed in causes intrastate, but likewise as to such pro­ceedings
as have been instituted before the Interstate Commerce Com­mission.
In closing, we will request that you kindly· examine the report in detail,
and the financial report relative to fees collected as well.
(Seal)
· Respectfully submitted,
. ARIZONA CORPORATION COMMISSION.
W. P. GEARY,
Chairman.
A. W. COLE,
F. A. JONES,
Commissioners.
Attest:
FRANK DE 'SOUZA,
Secretary.
•
ARTICLE XV.
Arizona· State Constitution
L· ( l } ) ;'
1.
EXTRACTS FROM THE CONSTITUTION
ARTICLE XV.
The Corporation Commission.
Sec. l. A Corporation Commission is hereby created to be composed
of three persons, who shall be elected at the. general election to be held
under the provisions of the Enabling Act approved June 20, 1910, and whose
. term of office shall be co-terminous with that. of the Governor of the State
elected at the same time, and who shall maintain their chief office, and
reside, at the State Capitol. At the first general State election held under
this Constitution ·at which a Governor is voted for, three commissioners
shall be elected who shall; fromand after the first Monday in January next
succeeding said election, hold office as follows:
The one receiving the highest -number of votes shall serve six years,
and the one receiving the second highest number of votes shall serve four
years, and the one receiving the third highest number of votes shall serve
twovears, 'And one commisaioner shall be elected every two years there-.
after:' 'In' ease of vac:ancy in sa'.id dffice,1 the' Governor shall: appoint a; com­missioner
to fill such vacancy. Such appointed commissioner shall fill such
vacancy until a commissioner shall be elected at a general election as pro­vided
by law, and shall qualify; The qualifications of commissioners may
be prescribed by law.
Sec. 2. All corporations other than municipal engaged in carrying per­sons
or property for hire; or in furnishing gas, oil, or electricity for light,
fuel, or power; or in furnishing water for irrigation, fire protection, or other
public purposes; or in furnishing, for profit, hot or cold air or steam for
heating or cooling purposes; or in transmitting messages or furnishing
public telegraph or telephone service, and all corporations other than
municipal, operating as common carriers, shall be deemed public service
corporations.
Sec. 3. The Corporation Commission shall have full power to, and
shall, prescribe just and reasonable classifications to be used, and just
and reasonable rates and charges to be made and collected by public
service . corporations within the State for service rendered therein, and
niake reasonable rules, ·regulations and orders, by which such corporations
· shall be governed in the transaction of business within the State, and may
prescribe the forms of contracts and the systems of keeping accounts to
8 ARIZONA CORPORATION COMMISSION,
be used by such corporations in transacting such business, and make and
enforce reasonable rules, 'regulations and orders for the convenience, com­fort
and safety, and the preservation of the health of the employees and
patrons of such corporations; Provided, that incorporated cities and towns
may be authorized by law to exercise supervision over public service corpor­ations
doing business therein, including the regulation of rates and charges
to be made and collected by such corporations; Provided further, that
classifications, rates, charges, rules, regulations, orders and forms or sys­tems
prescribed or made by said Corporation Commission may from time
to time be amended or repealed by such Commission.
Sec. 4. The Corporation Commlaston, and the several members thereof,
shall have power to inspect and investigate the property, books, papers,
business, methods and affairs of any corporation whose stock shall be
offered for sale to the public, and -of any public service corporation doing
business within the State, and for the purpose, of the Commission, and of
the several members thereof, shall have the , power of a court of generaf
jurisdiction to enforce the attendance .of witnesses and the production of
evidence by subpoena, attachment and punishment, which said power shall
extend throughout the, State. Said Commission .shall have power to take
testimony under commission or deposition either within or without the
State.
Sec. 5. The Corporation Commission shall have the sole power to
issue certificates of incorporation to companies organizing under the laws
of this State, and to issue licenses to foreign corporations to do business
in this State, as may be prescribed by law.
Sec. 6. The law-making power may enlarge the powers and extend
the duties of the Corporation Commission, and may prescribe rules and
regulations to govern proceedings instituted by and before it; but, until such
rules and regulations are provided by law, the Commission may make rules
and regulations to govern such proceedings.
Sec. 7. Every public service corporation organized or authorized under
the laws of the State to do any tansportation or transmission business within
the State shall have the right to construct and operate lines connecting
any points within the State, and to connect ,at the State boundaries with
like llnes r. and every such corporation shall have the right with any of its
lines to cross, intersect, or connect with, any lines of any other public
service corporation.
Sec. 8. Every public service corporation doing a transportation busi­ness
within the State shall receive and transport, without delay or , dis­crimination,
cars loaded· or empty,. property, or passengers delivered to It
by any other public service corporation doing a similar business, and de·
liver cars, loaded or empty, without delay or discrimination, to other
ARIZONA CORPORATION COMMISSION
transportation corporations, under such regulations as shall be prescribed
by the Corporation Commission, or by law.
Sec. 9. Every public service corporation engaged in the· business of
Lransrni ttf ng messages for profit shall receive and transmit, without delay
or discrimination, any messages delivered to it by any other public service
corporation engaged in .the business. of transmitting messages for profit,
and shall, with its lines, make· physical connection with the lines of any
public service corporation engaged in the business of transmitting messages
for profit, under such rules and regulations as shall be prescribed by the
Corporation Commission, or by lawt Provided, that such public service
corporations shall deliver messages to other such· corporations, without
delay or discrirninatlon, under such rules and regulations as shall be pre­scribed
by the Corporation Commission, or by law.
Sec. 10. Railways heretofore constructed, or that may hereafter be
constructed in this State, are hereby· declared public highways, and all
railroads, car, express, electric, transmission, telegraph, telephone or pipe
line corporations, for the transportation of persons, or of. electricity, mes­sages,
water, oil or other property· for profit, are declared to be common
carriers and subject to control by law.
Sec. 11. The rolling stock and all other movable property belonging
to any public service corporation in this State, shall be considered personal
Property, and its real and personal property, and every part thereof, shall be
liable· to attachment, execution and sale in the same manner ·as the prop­erty
of individuals; and the law-making power shall enact no laws exempting
any such property from attachment, execution, or sale.
Sec. 12. All charges made for service rendered, or . to be rendered by
public service corporations within this State shall be Just and reasonable,
and no discrimination_ in charges, service, or facilities shall be made be- .
tween persons or places for rendering a like and contemporaneous service,
except that the granting of free or reduced rate· transportation may be
authorized by law, or by the Corporation Commission, to the classes· of
persons described in the Act of Congress approved February, 11, 1887, _en-.
titled An Act to Regulate· Commerce, and the amendments thereto, as those
to whom free or reduced rate. transportation may be granted.
Sec. 13. All public service corporations and corporations whose stock
shall be offered for sale to the public shall make such reports to the Cor­.
norauon Commission, under oath, and provide such information concerning
their acts and operations as may be required by law, or by the Corporation
Commission.
Sec. 14. The Corporation Commission shall, to aid it in the proper dis­charge
of its duties, ascertain the fair value of the property within the
10 ARIZONA CORPORATION COMMISSION
State of every public service corporation doing business therein; and every
public service corporation doing business within the State shall furnish to
the Commission all evidence in its possession, and all assistance in its
power, requested by the Commission in aid of the determinatton of the
value of the property within the State of such public service corporation.
Sec. 15. No public service corporation in existence at the time of the
admission of this State into the Union shall have the benefit of any future
legislation except on condition of· complete acceptance of all provisions of
this Constitution applicable to public service corporations.
Sec. 16. .If any public service corporation shall· violate any of 'the·
rules, regulations, orders, or decisions of the Corporation Commission, such'
corporation shall forfeit and pay to the State not less than one hundred
dollars nor more than five thousand dollars for each such violation, to be
r€covered before any court of competent jurisdiction.
. -
Sec. 17. Nothing herein shall be construed as denying to public service
corporations the right of appeal -to the courts of the State from the rules,
regulations, orders, or decrees· fixed by the Corporation Commission, but the
rules, regulations, orders, or decrees so fixed shall remain in force pending
the decision of the courts.
Sec. 18. Until otherwise provided by law, each Commissioner shall
receive a salary of three thousand dollars a year, together with his actual
necessary expenses when away from home in the discharge of the duties of
his office.
Sec. 19. The Corporation Commission shall have. the power and author­ity
to enforce its rules, regulations, and orders by the imposition of such
fines as it may deem just, within the limitations prescrtbed in Section 16
of this Article.
CHAPTER 90-1.. 912
(First Session)
. Defining Commission' s
Powers
SESSION LAWS OF ARIZONA
Chapter 90.
AN ACT
lU~l..v\TING TO PUBLIC SERVICE CORPORATIONS, PROVIDING· J;'OH
THE REGULATION OF THE SAME, FIXING PENALTIES FOR 'l'HE ·
, VIOLATION THEREOF, AND REPEALING CERTAIN ACTS; \V:TH
AN l!.MEHGENCY CLAUSE1.
Be it Enacted by the Legislature of the State of Arizona: -
Sec. 1. This act shall be . known as the "Public Service Corporation
Act," and shall apply. to the public service corporation sherein described and
to the Commission herein referred to.
Sec. 2. (a) The term "Commission," when used in this Act, means
the Coruorauon Commission of the State of Arizona.
(b) The term "Commissioner," when used in this Act, means
one of the members of the Commission. ·
(c) The term "Corporation," when used in this Act, includes
a corporation, a company, an association, and a joint stock association.
( d) • The term "Person," when used in this Act, includes an
individual, a firm, and a co-partnership. .
(e) The term "Transportation of Persons," when used in this
Act, includes every service in connection ·with or incidental to the safety,
comfort, or convenience of the person transported and the receipt, carriage,
and delivery of such person and his baggage.
(f) The term "Transportation of Property," when used in
this Act, includes every service in connection with or incidental to the
transportation of property, including in particular its receipts, delivery, ele­vation,
transfer, switching, carriage, ventilation, refrigeration, icing, dun·
nage, storage, and handling, and the transmission of credit by express corpo­rations.
.· (g) The term "Street Railroad," .when used in this Act, in­cludes
every railway, and each and every branch or extension thereof, by
Wll.atsoever power operated, being mainly upon, along, above, or below any
street, avenue, road, highway, bridge, or public place within any city, county
or town, together with all real estate, fixtures and personal property of
every kind used in connection therewith, owned, controlled, operated, or
l-1 ARIZONA CORPORATION COMMISSION.
managed, for public use in the transportation of persons or property; but
the term "street railroad," when used in this Act, shall not include a rail­way
constttuting Or used I ak ·a 'part: Of a' commercla!' Or interurban railway.
_ (h) The term "Street Railroad Corporation," when used in
this Act, includes .every corporation. or'p.erson, their lessees, trustees, re- .
ceivers, or trustees appointed by any court whatsoever,owning, controlling,
operating, or managing any street railroad for compensation within this
State.
(i) The term "Railroad," when used in this Act, includes
every commercial, interurban, and other· railway, other than a street rail­road,
and each and every branch or extension thereof, by whatsoever power
operated,' together with an· tracks,' brldges.: trestlesj" rights of way, subways,
tunnels, stations, depots, union depots, .yards, grounds, terminals.. terminal
facilities, structures and equipment, and all other real estate, fixtures and
personal property, 01 every kind· used in· connection therewith, .:owned;·'c on­trolled,
operated, or managed for public use in the transportation· of. person
or property.
(j} The term "Railroad Corporation,": when used in 'thia Act,
includes every corporation or person, their lessees, trustees, receivers, or
trustees appointed by any.court whatsoever,'. owning, eontrolling; operating,
9r .managing any- railroad :,for .transportatton, within. -this. State. r .1 r · ·. J', .•,
(k) The term "Express -Oorporattorr;" t.. when'vused 1 in''.'this
Act, includes every corporation or person, their· lessees, trustees, receivers
or-truatees appointed> by any court whatsoeverjengaged in 'or transacting
the business of transporting 'any freight, merchandtse.: or other property,· for
compensation on the. line 1of any· common carrier or stage or auto stage line
within this state.
·~1<1•• - '(I) .The 'term: "Common: Carrier," when used in this Act,
includes every railroad -corperatlon: • street railroad. corporation]" express
corporation; dispatch, sleeping· car, "dining ear,' drawing. room ·car, freight,
freight line, refrigerator,· oil, stock, fruit; car loaning, ear rehting;rcar'load­Ing,
and every other -car corporation,' or •person} electrical corporation}.
transmission corporation; telegraph> corporation f ·telephone i eorporation ;
water corporation, ·or' pipe line. 'Corporation; ' for the transportation 'of' per­sons,
or of electricity, messages, water, oil=or 'other 'property," fot profit,
their lessees, trustees, receivers or trustees appointed by any court what­soever,
operating for compensation within this State. .
(m) The :te'rni'.''Pipe L:ine,'' when used in' this. A~t,· tnclude~
all real' estate,' fixtures. 'and i>'ersonal property, owned, 'co'nfrolled, "'opera fed
or managed,' in connectton 'wtth ' or. to' facilitate· the 'ttansmissfdn:,,' storage; ...
distribution, or delivery of crude oil, or other fluid substance, except water,
through 'pipe Iines: in' furnishing' hot or cold 'air· or steam' for heating or
cooling: purposes. \ l • ' ' . ~ '. '! •.•• ' ' <•J . , •.•. ' ·. ' ·.• _.,.,_, .• , )'._. : :,
·'.<n):_ The·:terni'''Pipe'--Line ;Corporatioll;u 'when h~ed '1il'this
Act, ·.th chides. ·every1 'corporation . or· ·person;'. their' 'I es.sees, 'trustees~' receiv~rs
or trustees' appointed by ariy' court whatsoev"er, owning,' controlllng,~6perat~
ing, or managing,'any pipe line' for compensation~·within! this 'state: ,:'/. '".
ARIZONA CORPORATION. COMMISSION 15
(o) · The term "Gas Plant," when used in this Act, includes all
real estate,. fixtures and personal property, owned, controlled, operated, or
managed, in connection with ~r to facilitate the production, generation, trans­mission,
delivery, or futnishin'g of ga~ (natural ' or. manufactured) . for light,
heat, or power.
(p) The term "Gas Corporation," _when used in this· Act,
includes every corporation or person, their lessees, trustees, receivers or
trustees appointed by any court whatsoever, owning, controlling, operating
or managing, any gas plant for compensation within this State, except where
gas is made or produced on, · and distributed by. the maker. or producer
through . private property alone solely. for his own use or the use of his
tenants and not for sale to others.
(q) The; ter~~ "Electric Pla:D't," ~h~~ used in this Act,
includes' ali real 'estate, . flxtures and personal' property owned, controlled,
operated, or managed, in connection with or to 'facilitate the production,
generation, . translllissi~n.· delivery, or furnishing of electricity for light,
heat, or' power, 'and all 'condults, ducts, or other devices, materials, ap­paratus,.
or property, for containing, holding, or carrying conductors used
or to be' used for containing; holding,' or carrying -conductors used or. to be
used for the transmission of electricity for light, heat, or; power.
• " • ~ ~-· . . r · . · 1 - • -. • :-· - _ . _:- •• ~ __ . _ - .,_ , -, ~ , .··- _ .'"' ,
• - . • • > (r) The term "Electrical' Corporation," when used in this Act, .. includes every corp~ratibn or" person, their lessees," trustees, : receivers
or trustees ·ap.pointed by any- court 'whatsoever, owning, controlling, operating,
or managing, .any electric plant for compensation within this State, except
where electricity is generated on' 1 or dlstrlbuted by· the producer· through
privat~ property a16ne solely ' for his own use or the use of his tenants
and riot for sale to others. · ·- · ; : i -·; ', ,,.
. (s) The . term "Telephone Line,'' when used in this Act,
includes. an conduits, ducts, poles, -~ires 'cables; instruments and appliances,
'and all other r'eai 'estate; fixtures, and. ~erson.'al property, owned, controlled,
operated, or managed in. 'connection: with or to facilitate communication by
telephone, whether such communication is had 'with or without the use of
transmission wires. i_. n; . . . o;t •
-~ .·_,. -,
1(t) _ The term .. ~ "Telephone Corporation,": when: used b{ this
Act,· Includes evety corporatton or· person, their lessees; trustees, receivers
'or trustees appointed by any' court 'whatsoever, owning, controlling, operat­ing,
or managing any telephone line for compensation within this State. :
, . _· _ •-. __ . _ (u) The term "Telegraph Line," when used in this_ Act,
"include~a· ll conduits,' ducts, poles, wires, cables, instruments and appliances,
and 'an other 'reafestate, fixtures and personal property, owned, controlled,
operated,'. or managed in connection with or to" facilitate communication by
telegraph, whether such communication is had with or without the use of.
transmission wires.
. . . . - _- (v') _ The t'erm "Tei~graph Corporation," 'when used in this
Act,' .1nei{ide's - every· corporation or person,' their' lessees," trustees; receivers
or 'trustees,'''app.ointed by :any 'court whatsoever, owning, controlling,' oper­at,
ing, o:r: managing any telegraph li~e. for compensation wi.thin; ~his. State.
16 ARIZONA CORPORATION COMMISSION
(w) The term "Water System," when used in this Act, in­cludes
all reservoirs, tunnels, shafts, dams, dykes, headgates, pipes, flumes,
canals, structures and appliances, and all other real estate, fixtures, and
personal property, owned, controlled, operated or managed in connection
with ..or to facilitate the diversion, development, storage, supply, distributions,
sale, furnishipg, carriage, apportionment, or measurement, or water for
power, fire protection, Irrigattcn, reclamation or manufacturing, or for mu­nicipal,
domestic or other beneficial use.
· (x) The term "Water Corporation," when used in this Aet,
includes every corporation or person, their lessees, trustees, receivers or
trustees appointed by any court whatsoever, owning, controlling, operating,
or managing any water system for compensation within this State.
(y) The term "Warehouseman," when used in this Act,
includes' every corporation or person.: their lessees, trustees, receivers or
trustees appointed by any court whatsoever, owning, controlling; operating,
or managing any building or structure in which property is regularly. stored
for. compensation within this State, in connection with or to facilitate the
transportation of property by a common carrier, or the loading or unloading
of the same.
f(z)) The term "Public Service Corporation," when used in this
Act, includes every common carrier, pipe line corporation, gas corporation,
electrical corporation, telephone corporation, telegraph corporation, water
corporation and warehouseman, as these terms are defined in this section,
and each thereof is hereby declared to be a public service corporation and
to be subject to the jurisdiction, control, and regulation of the Commission
and to the provisions of this Act.
Sec. 3. (a) The Corporation Commission shall consist of three mem­bers,
who shall be elected and bold office for such time as prescribed in
· Section 1, Article XV of the Constitution of the State of Arizona. The
Commissioners shall elect one of their number chairman of the Coin.mission.
(b) Whenever a vacancy in the ·office of Commissioner shall
occur, the Governor shall· forthwith appoint a qualified person to fill the
same. Such appointed Commissioner shall fill such vacancy until a Com­missioner
shall be elected at a general election as provided by law, and
shall qualify.
Sec. 4. The . Attorney-General of the State shall be the attorney of
the Commission. It shall be the duty of such Attorney-General to represent
and appear for the people of the State of Arizona and the Commission in
all actions and proceedings involving any question under this Act or- under
any order or act of the Commission, and, if. properly directed to do so by
the Commission to intervene, if possible, in any action or proceeding in
which any such question is involved; to commence, prosecute and expedite
the final determination of all actions and proceedings directed or authorized
by. the Commission; to advise the Commission and each Commissioner,
when so requested, in regard to all matters in connection with the powers
ARIZONA CORPORATION COMMISSION 17
and duties of the .Commission and the members thereof; and generally to
perform all duties and services appertaining. to the Commission, which
the Commission may require of him.
Sec. 5. The Commission shall appoint a secretary, who shall hold
office during its pleasure. It shall be the duty of the secretary to keep a
full and true record of all proceedings of the Commission, to issue all neces­sary
process, writs, warrants.. and. notices, and 'to perform such other
other duties as the Commission may require or prescribe. He shall also
have all the powers conferred by law upon peace officers to carry weapons,
make. arrests and serve warrants and other process in any county; city or
town of this State.
Sec. 6. The Commission shall have power to employ, during its pleas­ure,
such officers', experts, engineers, statisticians, accountants, inspectors,
clerks, and 'employees as it may deem necessary to carry out the provisions
of this Act, ·or to perform the duties and exercise the powers conferred by
law upon the Commission.
Sec. 7. Each Commissioner and each person appointed to a. civil
executive office by the Commission· shall, before entering upon the duties
of his office, take and subscribe the constitutional oath of office. Each
Commissioner shall be a qualified elector of this State, and no person in
the employ of or holding any official relation to any corporation or person,
which said corporation or person is subject in whole or in part to regulation ~
by the Commission, and no. person owning stocks or bonds of any such
corporation or who is in any manner pecuniarily interested therein shall be
·appointed to or hold the office. of Commissioner or be appointed or em-ployed
by the Commission; Provided, that if any such person shall become
the owner of such stocks or bonds, or become pecuniarily interested· in such
corporation otherwise than voluntarily, he shall within a reasonable time
divest himself of such ownership or interest; failing to do so, his office or
employment shall become vacant.
Sec. 8. (a) The o-ffice of the Commission shall be in the city of
Phoenix, county of Maricopa. The office shall always be open, legal holidays
and non-judicial days excepted. The Commission shall hold its sessions .at
least once in each calendar month in said city of Phoenix, and may also
meet at such other time and in such other places as may' be axpedlent and
necessary for the proper performance of its . duties. For· the purpose of
holding sessions in places other than the city of Phoenix, the· Commission
shall have the power to occupy and. use any court room or to rent quarters
or offices, and the expense thereof and in connection. therewith shall be
paid in the same manner as other expenses authorlsed by this Act. The
sessions of the Commission shall be public.
(b) The Commission shall have a seal, bearing the following
inscription: "Arizona Corporation Commission." The seal shall be fixed
18 , l ARIZONA CORPOnATION COMMISSION "'-·'•,.· : •• • •• i. ' ;
to all writs and authentications of copies of records and to such other in­struments
as' the . Commission. may direct. All courts . shall tak~ judicial
notice of saia' sear.' ' ' ' ' . ·. ' .. ' ' \' ;
(c) The Commission is authoriz'e<( to p~b~~re '~il 'n'ecess.ary
books, maps, charts, stationery, instruments, office furniture, apparatus and
appliances, a~d the ; same' shall be paid for in the same 'manner as other
expenses: authorized by this Act. ' · · · '· '·
...:_ '..: . . . ' : ; • . • • • . ·. ; .·. ~
Sec. 9. · A· majority of the Commissioners shall constitute a· quorum
for the transactton of anY business, . for the performance of. any duty or for
the 'exercise of ·any. power of the: Commission. 0No vacancy ln' the Cornmis­sio~
shall lifu.pair the right of the remalntng " Commission.ers to' exercise
all the powers of the Commission. The act of a majortty of the Comltl.ission
when in se~sion as a board shall be deemed to be the act of the Commission;
but any: inve'stigation~ inquiry; or hearing which the Cmmission has. power
to undertake or fo . hold may be. undertaken or held. by. or. before any Com­missioner
designated for the purpose by the Commission, and every finding,
order, or decision made by a Commissioner so designated, pursuant to such
investigation, inquiry, or hearing, when approved and confirmed by the
Commission and ordered filed in its office, shall be and be deemed to be
the.... ... finding, order or . decision of. the Commission. • .. ' - '
· Sec. 10. The · annual salary of . each · Commissioner shall be Three
Thousand Dollars ($3000.00). All officers, experts, inspectors, statisticians,
accountants, engineers, clerks and· employees of the Commission shall re-
- celve' such compensation as may be fixed by the Commission. The Com­missioners,
secretary and rate expert shall be civil executive officers and
their salaries as fixed by law, or the Commission, shall be paid in the same
manner as 'are the ·salaries of other State officers. . The salary. or. com­pensation
of every other person holding office or employment under the
Commission shall be paid monthly from the funds appropriated .for .the use
of the Commission . after being approved by the Commission, upon claims
therefore to be audited . by the board of control. ·
Sec. 11. All expenses incurred by the Commission pursuant to the
provisions of ·this Act, including the actual and- necessary traveling and
other expenses and disbursements of the Commissioners,· their officers and
employees, incurred· whlle on business of the Commission; shall be paid ·
from the funds appropriated for the· use of the Commission after being
approved by the Commission, upon claims therefore to be audited, by the .
boa.rd of control.i. No Commissioner and no officer or. employee of the
Commission shall . be denied the right to travel upon· any railroad, . car or
other vehicle of such common carrier whether such. railroad.. car or other
vehicle be used. for the transportation - of . passengers or, fretght.. and re-gardless
of its class.
Sec. 12. The Commission shall make and submit to the Governor on
or before the. first da~ of December of. each year subsequent to the rear
' ., • ' ' ' • • - • • • '• . ·' ' • . • . '". '.· • : ~
'nineteen' hundred and twelv~, a ;r~po~t containing' a full and ~omplete acc~u~t of its transaetions and·, proceedings 'tor' the preceding fiscal year, together
witli such:·oth~r !ii:cts'; .sllggest'io!is, and recommendations as it may deem
of value to th~ people of the State.
J L It, u l; ., ~·"'H
Sec.:.13;, (a) 1 All,;charges·· .made; demanded -or received· by any' public
service corporation, -or by any two. or -more public: servlce corporations, 'for
· any product or commodity: furnished' or· -to be furnished, · or any -servlce
rendered .to :(or) to be- rendered,' shall ·be juetvand rreasoneble': 'Every
unjust .or ·unreasonable charge 'made, demanded or received for such product
or commodtty.or service ·ij:j'hereby 'prohibtted and -deelared unlawful. ··
• 1 , 1 ·;.: :(b) . Every public. service corporation shall furnish, provide.
and maintain such service, instrumentalities, equipment and facilities as
shall -promote the safety, .. health, comfort· and convenience of its 'patrons,
. employees and the public, and as- shall be' irr aii respects .adequate, efficient,
just and reasonable. ·
(c) All rules and' regulations made by "a public 'service
corporation affecting or pertaining to its charges or service to the public
shall be just and reasonable.
Sec. 14: (a) Every common carrier shall file with . the Commission
and shall print a~d keep open to the public inspection schedules showing
the rates, . fares, charges. and'. classifications for·. the transportation between
termina, within this . State, ·of persons 'and property from .each point upon
ifs route to' all' oth'er.points thereon; and from each point upon its_ .route
to all points upon· every other route· leased, operated or controlled by It:
and from each point on its. route or upon any' route 'leased, operated, or
controlled by it to all pcinte upon the route of any other common carrier,
whenever a through· route and a joint route shall have been established or
orderedibetween' any two such' points. If no joint rate. over a through
route has been established, the schedules of the several carriers in such
through' 'route shall . show the separately established rates, ' fares, charges
and classifications. applicable to the through transportation. The schedules
printed as aforesaid shall plainly state the places between which property
and person will be carried, and shall also . contain the classification of
passengers or property in force, and shall also state separately all terminal
charges, storage charges,' icing charges and all other charges which the
Commission may : require. to be stated, all privileges or .. facilities. granted
or allowed, and all rules or regulations which may in any wise change, affect
or determine. any part, or the aggregate of,. such ,rates,. fares., charges and
classifications,,, or 'th~ value of the service rendered 'to _tqe pas~~ngel', shipper, I , i ~ •. :. • • . •. · ,. • , 1. • l- l •. t .. :·, • , · ~ • .. · - · - • · • ,.. · · · ·• •· · ,_ · · · ' ?~ ~o~signe11.1!, _1, • , , t.i-: :. " t.. ... : i . , ', ·.c: ··n ·: · (•_ ::'. -:'. ,,_ :'• 11
. Subject to.such rules andregulations as the Commission may,_prescr1be,
such schedules shai1 be ·plainly .'prin,ted )n ,large: frpe;, and a copy thereo~
shall be kept by every such "carrier read.fry 'accessible to and for inspection by
the public in every station or office of such,_ car.rier 'Yher~ ,passen_gers or
property .. are ~espectiv~Iy '. r~c~'ive<l fa,~ .. 'tran.sportation, ~heii:. ~uch station
or' office. is in charge of 'an agent. ai:id i~ every station or office of such
20 ARIZONA. CORPORATION COMMISSION
carrier where passenger tickets! or tickets for ' sleeping, parlor car· or
other train accommodations are sold or bills of lading or way bills or re­ceipts
for property arc issued. Any or all of such schedules kept as afore­said
shall be immediately produced by -such carrier for inspection upon
the demand of any person. A notice printed in bold type and stating that
such schedules are on file with the agent· and open to inspection by any
person, and that the agent will assist any person. to determine from such
schedules any rates, fares, rules or regulations _in force, shall be kept posted·
by the· carrier in two public and conspicuous places in every such station
or office. The form ·of every such schedule shall be prescribed· by the Com­mission
and shall conform in the case of commo~ carriers subject to the act
of . Congress entitled, H An Act to Regulate. Commerce," approved February
- fourth, eighteen hundred and eighty-seven, and the acts amendatory thereof
and supplementary thereto, as nearly as may be to tlie form of schedules
prescribed by the Interstate Commerce Commission under said act.
(b) Under such rules and regulations as the Commission may pre­scribe,
every public service corporation other than . a common carrier shall
file' with the Commission within such time and in such form as the Com­mlssion
may designate, and shall print and keep open to public inspection
schedules showing all rates, tolls; rentals, charges and classifications col­lected
or. enforced, or to be collected or enforced, together with all rules,
regulations, contracts, privileges, and facilities which in any manner af
feet or relate to rates, tolls, rentals, classifications, or service. The
rates, tolls, rentals, and charges shown on such schedules, when filed by
a public service corporation as to which the Commission by this Act acquires
the power to fix any rates, tolls, rentals, or charges, shall not, within any
portion of the territory as to . which the Commission acquires as to such
public service corporation such power, exceed the· rates, tolls, rentals, or
charges in effect on the fourteenth day of February, nineteen hundred and
twelve; the rates, tolls, rentals, or charges shown on such schedules, when
filed by any public service corporation as to any territory as to which the
Commission does not by this Act acquire as to such. public service corpora­tion
such power, shall not exceed. the rates, tolls, rentals, and. charges in
effect at the time the Commission acquires as to such territory and as to
such public service corporation the power to fix rates, tolls, rentals, or
charges. Nothing in this section contained shall prevent the Commission
'from approving or fixing rates, tolls, rentals, or charges, from time to time,
in excess of or less than those shown by. said schedules.
(c) The Commission shall have power, from time to time, in its dis­cretion,
to determine and prescribe by order such changes in the form of
the schedules ref erred to in this section as it may find expedient, and to
modify the requirements of any of its orders, rules, or regulations in re-spect
to any matters in this section referred to. ·
Sec. 15. Unless the Commission otherwise orders, no change shall be
made by any public service corporation in any rate, fare, toll, rental, charge,
ARIZONA CORPORA TIGN COMMISSION 21
or cla~'.sification, or in any rule, regulation, or contract relating to or affect­ing
any rate, toll, fare, rental, charge, classification, or service, or in any
privilege or facility, except after thirty days' notlce to the Commission 'and
to the public as herein provided; · Such notice shall ·be given by filing with
the Commlssfon and keeping open for public inspection new schedules stat­ing
plainly the change or changes to be made in the schedule or schedules
then in force, and the time when the change or changes will go into. effect.
The Commission, for good cause shown, may allow changes without requir­ing
the thirty days' notice herein provided for, by an order specifying the
changes so to be made and the time when they shall take effect, and the
manner in. which they shall be filed and published. When. any change is
proposed· in any rate.: fare, toll, rental, charge, or classification, or in any
form of contract or agreement, or in any rule, regulation or contract relat­ing
to or affecting any rate, toll, fare, rental, charge, classification or ser­vice,
or in any privilege or facility, attention shall be directed to such
change on the schedule filed with the Commission, by some character to be
designated by the Commission, immediately preceding or following the item.
• Sec ... 16. The names of the several public service corporations which
are parties to any joint tariff, rate, fare, toll, contract, classification, or
charge shall be specified in· the schedule or schedules showing the same.
Unless otherwise ordered by the Commission, a schedule showing such·
joint tariff, rate/ toll, fare, contract, classification or charge need be filed
with the Commission by only one of the parties to it; provided, that there
is also filed with the Commission in such form as the Commission may
require a concurrence in such joint 'tariff, rate, toll, fare, contract, classifi­cation,
or charge lJy each of the other parties thereto.
Sec. 17. (a) (1) No common carrier subject to the provisions of
this Act shall engage or participate in the transportation of persons or
Property, between points within this State, until its schedules of rates,
fares, charges and classifications shall have been filed and ·published in
accordance with the provisions of this Act.
(2) No common carrier shall charge, demand, collect or receive a
greater ~r less or different compensation for the transportation of persons
or property, or for any service in connection therewith, than the rates,
fares, and charges applicable to tuch transportation as specified in its
schedule filed and in effect at the time; nor shall any such carrier refund or
remit· in any manner, or by any device· any portion of the rates, fares or·
charges so specified, except upon. order of the Commission' as hereinafter
Provided, nor extend to any corporation. or person· any privilege or· facility
in the transportation. of passengers or property except such as are . regu-
. larly and uniformly extended to all corporations and persons.
(3) No common carrier subject to. the. provisions of this Act shall,
directly or indirectly, issue, give or tender any free ttcket, free pass, or
free or reduced rate transportation for. passengers between points within
this State,. except to its employees and their families, its officers, agents,
22
~ ' ~ : ,.. r ..
ARIZONA CORPORATION COMMISSION
-: ;1· · • \ :· f ! . • ~ ' \ I_ 'i ' j f.; • _ . , ! · • • I ~ \ : surgeons, phyalcians, and attorneys at Jaw; to . ministers of religion,, tra v-eling.
secretaries o~ 'r,ailroad-Y,oung ,.Men'$,.Christian. Associations, inmates
.of hospitals .and charitable, and, eleemosynary. institutions, and. persons ex­elusively
'engaged .in .charttable and eleemosvnarv w~rk; to indigent,' des­titute
and homeless persons, and to such persons when transported PY char­itable
societies . or . hospitals, and the necessary, agents. employed .in such
transportation ; to inmates of the Nati~nal Homes of'.State Homes 'for: dis­abled.
Volunteer.Soldieis,' and of Soldlers•'and Sailoh?Iiolne;inclu'di~g tho~e
about to enter and th~se returning ·~fte~ discharge, 'a~d boards of managers
of. such homes; to necessary' care tak~rs of' live stock, koultry .~ milk and
fruit; to: einploye~s . on' sleeplng cars,' expre~~ ca~s; and to .1fo~men of tele­graph1
and. telephone c~ri>0:ration..~ ;' to railway:,ni11n service 'eriiploye~s;' post­office
• inspector's, cus to'm . Inspectors," and iinrn'igratioh . inspectors'; , fo' news­bo'ys
'on trains, baggage'·agents,l . witnesses ··attending.any.'te'g~1-investlga­tion
i~ which the common carrie~ is; Interested, persons' injured ::in1 \vr~ck-s
~nd'' physician~ . and . nurses' ahen'ding such" person~;" when :auth'ori~~d by
'the corporation· co~missi·o~; bro~id~d; ·oia't the· ierrri''·•1employee·s,,·'as U.'sed.
in this. ~ectio~. shall include Jurloughe,d, . ;pe~sione~, , and superannuated em­ployees,
persons 'who have become disabled ·~r infirm"in. th.'e' service of any -
such' coinm~~ c~rri~~. and' th~· 're'~~1ns 'of"a pe'r~n 'kiil1ed' in the ~mploym'ent
of 'a 'c'om'rrion 'carrier a~d ~x~e;mpfoy'ees"i~aveling' f~r 'the'p~~pose' of .. 'en't'er­irlg/
th~ ~~rvice ~r"a~y such :c~mmon ·~arri~r;··a~d tlie''t'er~· "families" as
used in this section shall include the families of those persons named in
this. proviso, 'also the' families of. perscnis' 'killed, 'and the" wfdo.ws. during
'widowhood;· .and minor children,.during minority~-of'p.ersons .wilo'd'.ied while
in. the. s'ervice of' any such common. carrier .... :Notlling~ln t:his 'Act' shall be
construed to prohibif the hiterchange of pas'ses' fo'r the 'officers, agentS; and
employees on common carriers, and their families; nor to prohibit any com­.
n~on ~carrier from 'carrying,"passengers' free \vith the'' obJect of providing
relief. in case's of general epidemfo, pestilence,' 'or ~0th.er' calamitous' visitation;
and,. provided. furth'er, that'ihese' ''prov!Sions .• 'sliall iiof be- construed to pro­'
J:libit 'the' privileges 'of pa.'sses 'o'd:ranks: o'r' the 'eichange 'thereof'with each
other, for the officers, agents, employees, and. thefr ·taniflies of an common
'cari'iers,.'subject to' the provisions Ot ib.is'··.Aa.::i .... ,. 11"''
::.. •
': . .A:nd, ptovided further'; 'that with 'the1'cons'ent 'of' th~. Ccfrporatior{Corri­mission/'
every· coID.mo.ii ··c·arrier· may· trab.sport','free;-· ot·'af'reducM rates,
bontractor~· ~nd t~efr employees, tmate~iaC or'supplfo·s. for use . O'r.'engaged
'ib. carrying but their' contracts vdth said common carriers, for "constrl.lction,
~peration;· or 1maintenanc'e 'work, ~r. wo'rk incidental thereto''' on the Iin'e; ()'f
:the "issuing carrfer;· to th~ extent 'only' ;that 'such free. or red'uded fate: 'trans-.
portaHoii is provided' for· in the 'specificatioiis upon which the';contract is
based and in the: contract 'itself. ,.
Common ·carriers may also enter into contracts· with each· other for an
exchange of service. · ·. · · · ! '' •
1
'''
i i J l : ' ' > .~ ! ; - ' ' ' { " - . ' . ~ - . . ' ; ' '' " ~ ' . . ' > ' f' ·~ . . ' ( 4) . Every common carrier shall, on. the .first. Monday in July of each
':Yea'.r, a~d at such other 'ume as . may be reciU:ir.ed I b'y 'the Commission, file
with the Commission a verified list of all tickets, passes, mileage books,
franks, or 'reduced rate transportation issued for 'other than actual" bona fide
money .consideration. at full established 'rates during the preceding. year,
together with . the names of the :'recipients thereof, the. amount received
therefor, and the ~easori for. issuing the same. .Th.is shall not apply. to the
sale of tickets at reduced rates open "to the public, .
. (b) . Except as, in this section otherwise provided, no public service
corporation shall. charge, demand, collect; •. or receive a greater or. less or
different compensation. for any: product or. commodity furnished, or to be
furnished, or for any service .rendered, or to be rendered,. than the rates,
tolls, rentals, and charges applicable· to such product or commodity or ser­vice
as specified .in its schedules on file and. in effect at the time, nor shall
any' such public service corporation refund or remit, directly or indirectly,
in any manner or by any device, any portion. of· the rates, tolls, rentals and
charges. so specified, nor extend to any corporation .or persons any. form, of .
contract or agreement or any rule or regulation, or. any facility or privi­lege
except such as are regularly and uniformly extended to all corporations
and persons; provided,· that the Commission may by, rule .or order. estab­lish
such exceptions from the operation of thfs prohtbltton as it. may con­sider
just and reasonable as to each public service corporation: , · ..
Sec. 18. 'Every common carrier and every telegraph and. telephone cor­poration
shall print' and 'file or cause to· be filed with the Commission sched­ules
· showing all the rates, fares, tolls, rentals, charges and classifications
for the transportation -of persons or property or the transmission of. mes­sages
or conversations between ali points. within this State and all points
without the: State upon its· route, and between all· points. within this ·State
and all points without the· State upon every route leased,· operated, or con­trolled
by it, and between all points on its route or any route. leased, oper­ated
or controlled by it within this State and alFpoi~ts without the State.
upon the route of any other common carrier or· telegraph or telephone·
corporation, whenever a through route and joint rate shall have been estab­Iished
. between any two such points.
Sec. 19. No public service corporation shall, as to. rates, charges •. ser­vice,
·facilities, or in any other .respect, make or grant· any preference or
advantage to any· corporation or person or subject any corporation or personi
to any prejudice or disadvantage; No public service corporation shall estab­lish
or maintain any unreasonable .difference as to rates, charges, service,
facilities, or in any other respect, either as between localities or as between:
classes of service .. The Commisslon shall have the power to determine any
question of fact arising. under this section. ' ..
Sec. 20. Nothing in this Act shall b~ 'taken to prohibit any public ser-'
vice corporation from itself profiting, to - the ·extent· permitted. by. the Com­·
mission, Iromrany economies, efficiencfes, 'or improvements which it may
make, and from distributing by way of dividends', 'or otherwise disposing
o~ the profits to which it may be so entitled, and the Commisaion is au~hor-
ARIZONA CORPORATION COMMISSION
ized to make or permit such arrangement or arrangements with any-public
service corporation as it may deem wise for the purpose of encouraging
economies, efficiencies or improvements and securing to the public service
corporation making the same such portion, if any.. of the profits thereof. as
the Commisslon may determine.
Sec. 21. Nothing in this Act shall be taken to prohibit a corporation
or person engaged . in the production, generation, transmission, or furnish­ing
of heat, cold air, light,· water, or power, or telegraph, or telephone ser­vice,
from establishing a sliding scale of charges; provided, that a schedule
showing such scale of charges shall first have been filed with the Commis­sion
and such schedule and each rate set out therein approved by it. Nothing
in this Act shall be taken to prohibit any such corporation or person from
entering into an arrangement for a fixed period for the automatic adjust­ment
· of charges for heat, cold air; light, water, or power, or telegraph or
telephone service, in relation to the dividends to be paid to stockholders of
such corporation, or the. profit to be realized by such person; provided, that
a schedule showing. the scale of charges under such arrangement shall first
have been filed with· the Commission and such schedule and· each rate set
out therein approved· by it. Nothing in this section shall prevent the Com­mission
from revoking its approval at any time and fixing other rates and
charges for the product or commodity or service, as authorized by this Act.
Sec. 22. (a) Every common carrier shall afford all reasonable, proper,
and equal facilities for the prompt and efficient interchange and transfer of
passengers, tonnage, and cars, loaded or empty, between the lines owned,
operated, controlled or leased by it and the lines of every other common
carrier, and shall make such interchange and transfer promptly. without
discrimination between ·shippers, passengers or carriers either as to com­pensation
charged, service rendered or facilities afforded. Every railroad
corporation shall receive· from every other railroad corporation, at any point
of connection, freight cars of proper standard and in proper condition. and
. shall haul the same either to destination, if the destination be upon a line
owned, operated, or controlled by such railroad corporation, or to a point
of transfer according to route billed, if the destination be upon the line of
some other railroad corporation. Nothing in this section contained shall
be construed as ia any . wise limiting or modifying the duty of a common
carrier to establish joint· rates, fares and charges· for the transportation of
passengers and property over the lines owned, operated, controlled or leased
by it and the lines of other common carriers, nor as in any manner limiting
or modifying the power of the Commission to require the establishment of
such joint rates, fares, and. charges.
(b) Every telephone corporation· and .telegraph corporation operating
in this State shall receive, transmit and deliver," without delay or discrim- .
ination, the conversations and messages of every other telephone or tele­graph
corporation with whose line a physical connection may have been
made.
ARIZONA CORPORATION COMMISSION 2i
Sec. 23. (a) No common carrier, or any officer or agent thereof, or
any person acting for or employed by it, shall, by means of known false
billing, classification, weight,· weighing or report ot weight, or by any other
device or means assist, suffer, or permit any corporation -or person to obtain
transportation for any person or property between points within this State,
at less than the rates and fares then established and in force as shown by
the schedules filed and in effect at the time. No person, corporation, or any
officer, agent. or employee of a corporation shall, by means ot false billing,
false or incorrect classification, false weight or weighing, false representa­tion
as to contents or substance of a package, or false report or statement
of weight, or by any other device or means, whether· with or without the
consent or connivance of a common carrier or any of its officers, agents, or
employees, seek to obtain or obtain such ·transportation for such property
at less than the rates then established and in force therefor.
(b) No person or corporation, or any officer, agent, or employee ·of a
corporation, shall knowingly, directly, Gr Indirectly, by any false statement
or representation as to cost or value; or the nature or extent of an igjury,
or ·by the Use of any false btlling, bill of lading, receipt, voucher, roll.. ac­count,
claim, certificate, affldavit or deposition, or upon any false, fictitious
or fraudulent statement or entry, obtain or attempt. to obtain any allow·
ance, rebate or payment for damage, in connection with or growing out of
the transportation of persons or property, or ·an agreement to transport such
Persons or property, whether with or without the consent or .connivance of
a common carrier or any of its officers, agents, or employees; nor. shall any
common carrier, or any officer, agent, or employee thereof, knowingly pay
or offer to pay any such allowance, rebate or claim for damage.
Sec. 24. (a) No common carrier subject to the provisions of this Act
shalj charge or receive any greater compensation in the 'aggregate for the
transportation of persons or of like kind of property for a shorter than for
a longer distance over the same line or route in the same direction, within
this State, the shorter being included within the longer distance, or charge
any greater compensation as a through rate than the aggregate of the inter­mediate
rates; but this shall not be oonstrued as authorizing any such com­mon
carrier to charge or receive as great a compensation for a shorter as
for a longer distance or. haul.
(b) No telephone or telegraph corporation subject to the provisions of
this Act shall charge or receive any greater compensation in the aggre­gate
for the transmission of any long distance message or conversation for
a shorter than for a longer distance over the same line <>r route in the same
direction, within this State, the shorter befog included within the longer
-distance, or charge -any greater compensation for a through service than
the aggregate of the intermediate rates or tolls subject to· the provisions of
this Act; but this shall not be construed as authorizing any such telephone
or telegraph corporation to charge and receive 11.s great a compensation for
a shorter as for a longer distance.
ARIZONA CORPORATION COMMISSION
'(c) .Upon application to the Commission, a telephone' or telegraph
corporation may, .in special · cases, after Investtgation, be authorized· by the
Commisslon to charge . less for a longer than for a shorter distance service
for the transmisslon 'of mes sages or conversations, .and the Commission may from time to time prescribe the extent to 'which, such telephone or tele­graph
corporation may be relieved from. the operation and requirements
6! .this section. ,
Sec. ~5._ (a) E\'ery rail~oad corporation, 'up~n the application of. any
corporation or 'person,'' being a shipper or receiver or contemplated 'shipper
or receiver of freight, for a connection between the· railroad of such rail­road
corporation and any existing or contemplated private track, tracks, or
railroad of such .corporatlon or. person, .shall make "such connection- and, pro­vide
such switches' and tracks as may, be necessary for that purpose and
deliver and receive cars . thereover; provided, that such connection is
reasonably practicable and can be installed and used without materially
increasing 'the hazard of the operation: of the railroad with which such con­nection
is sought.'and that the business which may reasonably be expected
to be received by such railroad corporation over such connection is suffi­cient
to justify the expense of such connection to such railroad corporation.
(b). Under the conditions specified in the proviso in .subsection (a)
hereof, every railroad corporation, . upon the application of any corporation
or person being a shipper or receiver or contemplated shipper or receiver
of freight, shall construct upon its right of way a spur or spurs for the pur­pose
of receiving and delivering freight thereby, and shall receive a~d de­liver
freight thereby.
$ec. 26. ··No foreign ·corporation, other than those -which by a compli­ance
with the laws of this State .are entitled to transact a public service
corporation business within· this State,· shall henceforth transact within this
s·tate any public service corporation· business, nor shall any foreign cor­poration
which is at present lawfully transacting business within this State
henceforth transact within this State· any public -servlce corporation buai-;
ness of a character different from that which it' Is'at present' authorized by
its charter or articles. of. incorporation to transact; nor shall any, license,
permit or franchise to own, control, operate, or manage any' public . service
'corporation business or any part or incident thereof, be henceforth granted
or. transferred, directly or indirectly, to any foreign co.rporaBon which is not
at: present lawfully transacting within this State a' publlc service 'corpora­tion
business of Iike character; provided, that foreign corporations engag­.
ing ill: comme:c~ with forelgu nations ?r commerc~ _ am~i;ig t~e ~eve.ra~ sta~es
of this Union may transact within this State such comrnerce and intra-state
commerce of ·a. like character. . . . ·''. ' . ' . . ' . ,
• f, ! ,"- ) : r, -:-,{\
:, · sec: 21. 'N-o -sheet or' interurb.an ranro~d 'corpoh:i,-tion···shacnh, arge; de.­marid,
collect 'or, receive more than fl ve cents for , one continuous ride in. the
same general direction within the corporate limits of any city or .town; ~xcept
ARIZONA CORPORA T~(?N. QOMMISSION
~ /..., ._) ., ; j·.; ... /: 27 n
· upon a showing before the Commission that such greater charge is justified;
provided, that until .the deciston df .the Cominissi6n ·upon such sh6wing, a
street or interurban railroad corporation may bon'timie'.tb 'demand, 'collect,
and receive the fare in effect on February fourteenth, nineteen hundred
arid twelve, or' at the'.uille the ciommis'siori ·acquires 'as; tO' such corporation
the· 'pdweHo fix fare~i wfthin' such c·lty or town. 'Eve'rY'stre.et:or· interurban·
· railroad c~rporatidn ·shail upon'such ·terms ks the Ccimmission shall. find to
be 'just and reasonable furnish to its' passengers ' transfers 'eritltling 'them·' to
one. continuous 'trip. iii the' same generaf dlrectloii over 'arid 'upon the' portions
of its lines within the same City 'arid courity; or city;'dr town, not Ireached
by' the' orlginatin!fear. "·.. ···.>c·
,·Sec:, 28. Every public ser~ice. corporation shall, furnish to.,the Com­mission
in ·s~ch)orm and s~chdetall as the Con1mission' shall prescribe all
tabulat·i~ns, computations ~nd 'an : ot:6.e'~ i'~formation' required 'by° it to carry
into effect any of the provisions of this Act, and .shall make specific answers
to all ·questions submitted by the· Commission.
(b) Every public service corporation receiving from the Commission
any blanks with directions to fill the same shall cause the same to be prop­erly
filled out so as. to answer fully and correctly· each questton propounded
therein; in case it is. unable to answer any question, it shall give a good
and sufficient reason for such failure.
( c) Whenever required by the Commission, "every public service cor­poration
shall deliver to the Commission· copies of any or all maps, profiles,.
contracts, agreements,' franchises, reports, books, accounts, papers and
records in its possession, or in any way relating to its property or affecting
its business, and also a complete inventory of all its property in such form
as the Commission may direct.
•• i. .. , •. ,'
·· (d) No information .furntshed to .the Commission. by .a. public service
corporation, except such matters, as are .apecifleally required . .to be open to
Public inspection by the provisions of thls -Act, .shall ibe "open to public
inspection or made public except on order of the Commission, or by
the Cpmmission, or a Commissioner, in the course; of a hearing or proceed­ing
.. Any officer or employee of ·the Commission who, in, violation of the
Provisions of this sub-section, divulges· any' such information shall be guilty
of a misdemeanor;·.· ·
' . ' '":~:. r, :·. 'i ··~j '·-~!·'4 '.". r •::' ~ ~('i -.r-·-·. t .• 1~·-·'!" ') Sec. · 29: Every public service corporation shall annually' furnish to
the~Commission· af such time and in such 'form as the ·com~issio~ may r~·­quire
a report in which the ·pubi1c· service" corporatioJl shat1' specificaM
~nswer . all questions. propound~d . by _the Commission 11pon or conc~rning
Which t.he. Co.mniission may desli·e'iriforma.ifon~' The Commission shall hav~
aut_hority io requir'e any pu.blic s.ervice &orporation 'to file1 m'Onthly_'r eports
of earnings a.nd expenses:. and to file. periodical or special, or b~th perio~ical
and. special' reports concerning any··~atter ·about .. whfoh the Commissfon is
authorize'd by 'this· or 'any' other ·Act"to. inquire .or·:·t~ ·keep 1Itself-'informed:·
• . . - ... . ' - ~ ~'. . ' . ,. _ , ;_ ~:, f:. : ) " •·._ _ - -- -. -~ ' . ', .- '.
28 ARIZONA _CORPORATION COMMISSION
or which it is required to enforce. All reports shall be under oath when
required by the Commissioner.
Sec. 30. .Every public service corporation shall obey and comply with
each and every requirement of every order.. decision, direction, rule, or reg­ulation
made or prescribed by .the Commission in the matters herein speci- .
fled; or any other matter. in any way relating to or affecting its .business
as a public service corporation, and shall do every thing (everything) nec­essary
or proper in order to secure compliance with and observance of every
such order, decision, direction, rule or regulation by all of its officers, agents,
and employees.
Sec. 31. The Commission is hereby vested with power and jurisdic­tion
to supervise and regulate every public service corporation in the State
and to do all things, whether herein specifically designated or in addition
thereto, which are necessary and convenient in the exercise of such power
and jurisdiction.
Sec. 32. (a) Whenever the Commission, after a hearing had 'upon its
own motion or upon compJaint, shall find. that the rates, fares, tolls, rentals,
charges, or classifications, or any of them, demanded, observed, charged,
or collected by any public service corporation for any service or product
or commodity, or in connection therewith, including the rates or fares for
excursion, or commutation tickets, or that the rules, regulations, practices,
or contracts, or any of them, affecting such rates, ·fares, tolls, rentals,
charges, or classiflcations.: or any· of them are unjust, unreasonable, dis­criminatory,
or preferential, or in anywise in violation of any provision of
law, or that such rates, fares, tolls, rentals, charges, or classifications are
insufficient, ·the Commission shall determine the just, reasonable, or suffi­cient
rates, fares, tolls, rentals, charges, classifications, rules, regulations,
practices, or contracts to be. thereafter observed and in force, and shall
fix the same by order as hereinafter provided.
(b) The Commission shall have power, upon a hearing had upon its
own motion or upon complaint, to investigate a single rate, fare, toll, rental,
charge, classification, rule, regulation, contract, or practice, or any . num­ber
thereof, or the entire schedule or schedules of rates, tares; tolls, rentals,
charges, classifications, rules, regulations, contracts and practices, or any
thereof, of any public service corporation, and to establish new rates, fares,
tolls, .rentals, charges, classifications, rules, regulations, contracts, or prac­tices,
or schedule, or schedules, in lieu thereof
Sec. 33 Whenever the Commission, after a hearing had upon its own
motion or upon complaint, shall find that the rates, fares or charges in force ·
over two or more common carriers, between any two points in this State,
are unjust, unreasonable or excessive, or that no satisfactory through route
or joint rate, fare or charge exists between such points, and that the public
convenience and necessity demand the establlshment of a through route and
ARIZONA CORPORATION COMMISSION 29
joint rate, fare or charge between such· points, ·the. Commission may order
such common carriers to establish such through route and may establish
·and fix a joint rate, fare, or charge, which will be fair, just, reasonable and
sufficient, to be allowed, charged, enforced, demanded and collected in the
future, and the terms and conditions under which such through route shall
be operated. ·
The Commission may order that freight moving between such
points shall be carried by the different common carriers, parties to such
through route and joint rate, by the nearest and most practicable route and
without being transferred ·from the originating cars. ,
In case the common carriers do not agree between them upon "the
division of the joint rates, fares or charges, established by the Commis­sion
over such through routes, the Commission shall, after hearing, by sup­plementary
order, establish such division; provided, that where any rail­road
corporation which is made a party to a through route has itself over
its own line an equally satisfactory through route between the termini of.
the through route est~lished, such railroad corporation shall ·have the
right to require as its division of the joint rate, fare, or charge, its local
rate, fare or charge over the portion of its lines comprised in such through
route. and the Commission may, in its discretion, allow to such railroad
corporation more than its local -rate, fare or charge, whenever it will be
. equitable so to do. The Commission shall have the power to establish and
fix through routes and joint rates, fares, or charges over common carriers
and stage or auto stage lines and to fix the division of such joint rates,
fares or charges.
Sec. 34. The Commission shall have the power to investigate all exist­ing
or proposed interstate rates, fares, tolls, charges and classifications and
all rules and practices in relation thereto, for or in relation to the tran~­Portation
·of persons or property or the transmission of messages or con­versations,
where any act in relation thereto shall take place within this
State; and when the same are, in the opinion of the Commission, excessive
or discriminatory or in violation of the Act ()f Congress entitled, "An Act to
regulate commerce," approved February fourth, eighteen hundred and eighty­seven,
and the acts amendatory thereof and supplementary thereto, or ·or
any other Act of Congress, or· in conflict with the rulings, orders or regu­lations
of the Interstate Commerce Commission, the Commission may apply
by petition or otherwise to the Interstate Commerce Commission or· to any
court of competent jurisdiction for relief.
Sec. 35. Whenever the Cemmisslon, after a hearing had upon its own
motion or upon complaint, shall find that the. rules, regulations, practices,
equipment, appliances, facilities or service of any public service corpora­tion,
or the methods of manufacture, distribution, transmission, storage. or
supply employed by it, are unjust, unreasonable, unsafe, improper; inade­quate
or insufficient, the Commission shall determine the just, reasonable,
safe, proper, adequate or sufficient rules, regulations, practices, equipment,
, ~~---
appliances, fa~ilities, service. or methods . to be observed, furnished, con­structed,.
enforced 'or. empl~ye°d: and shall . ,fix. the same' by its - order;' rule or
regulation. 1The·. Commlsstori shrall prescribe rules'· and r~gulatio~s for the
perfor:rriitnc~: o1f arii 1servfoe. orthe furnishing of any commodity of the char­acter
furnished or supplied by any public service . corporatioll:, . and . upon
proper. demand and tender of rates, such public service corporatton" shali
furnish such commodity or render such service within the time''anc(hpon
tli~ conditions 'provlded 'in' siich rules: '· '" "· :·> _· · ·· '....... .., ' , ·
". ·······~~ ....... "'···· ~ •. ,,,_. ~ :.... . ,., ..• ,.. • +-~ ... ·(·~--.,,- .. "· ·~ 11~
1:7-t.. ,·~ '",;.'\ ;· ..... :"',,_.., "'"•t.;;,-· ~-~· ,,~...,. ·... • "J ....... ;_ ... ;'· ~,~'~ ·'>'.
Sec. 36. Whenever. the. Commission, .arter .a. hearing, had upon: its own
motion qi'. upon complaint, shall . find that additions, extensions, repairs or
improvements to, or changes In •.. the. existing .plant., .equlpment, apparatus,
· · facilities or other .phyalcal .. property pf,~nY. public service corporation or, of
any two or, more public .. service corporations .ought, reasonably to. be .. made,
or. that a new structure. ~or structures, should. be erected.. to .promote the se~
eurlty or convenience of its .emplozees or the public, or in any other way
to secure adequate .servtee or facilities, .the . Comn:tlsion shall make and
serve an order directing .. that .suoh. addltlons, extenslons.. repairs, . improve­ments
.or changes be made or such structure or structures. be erected in the
manner. and. within . the .tlme '. ,specified . in . said order; .. If, jhe .. Commisaion
orders .the erection of.~ .. new structure • .tt may also . fix . the, .stte thereof .. Jf
3iny additions, .... extensiqns, . ;repairs, . hnprovements, _,o:r:,changes,, or any, .. ne.w
structu,re. or structures . which the Comm~ssion has ordered :to. be, .erected,
requi:l,"e joint action by two ,pr .:wore, public. service, corporations, .the. Com~
mission .shall notify the said public service corporations that, sμch. additions,
extensions, repairs, improvements or changes or new structures have been
ordered and that the same shall be made at their joint cost, whereupon the
said public service corporations shall have such reasonable time as the
Commission .~ay-.g~~u1.t. within which; to a·gr~e .. uP~.~- t~.e .P~~t-io~ .. ~r ~ivi~io~
of cost•· of such addition.s, extensions, repairs, improvements ·or changes ,or
~~~. structJir~ .. ~r. structu~ef3~ )Yhich ·.each .. shall. :t>~~~. .. If at ,t)ie expir~ti~~
of sμch time such public service corporations . shall fail to. file with the Com-
1lllssion, a. staten:ient .that.~~~ ~g~~~me~t pa~. _b~en: ~~d~. fo1,: ·~ ·. dlvisio~ .. or
appo,rtionme~t gf, tlie cost .?r1 ~xpense .of su_ch additi_OD;S, e.xtensions~. :reI,>~irs,
improvem~nt~, or . c~anges,, or n;e:w. structure. or, . ~tructures, . the. Co1Jlmi,ssion
shall ha.ve .the, .autho_rity, af~e~ f,urther hearing, __ to_ make an. 9rder. fi~ing th~
proportion of such. cost or exvense to be born (borne). by. each public ser­vice.
corporat.ion "a'~d "th'e. ~anne~ in 'which the~ ~a~e. shall b~ . :Paici" o~ • . ., ,r , • . , • ' ' · «".• · • • : • - • • ·• • · • "- ~ • • ·- Ii · • '·· •'- - . 't, · • : .. ~ " .. , r . ' _, ; • "' - _. • ' '' - ·I t •
secured.
";,,Sec~ 37 ~".Whene~er. ~h,e .. Co!llmission,_ after ,a, .. h~aring,1had, UP()n its._.own
mo.tion ox: upon complaint,, a.hall find ,that Jl.llf,railroad corpor~tiop.,,,or s_tre~t . . . '.,. .. ' . ·..• . ' .L ;_ ' ' . , .... • .·. . . .•.. ····'} railroad corporation does .. not ,:run a. sufficient number. of trains or .. cars~ qr
p~ssess or': operate s.uffici~~t motiv~ power, reasonably to accommodate' the
traffic, passenger or freight, transported by or offered for transportation
to it, or does not run it~ . trains .or 'cars with sufficient frequency .or at a
reas~nable or proper time ')av~ng'. r~gard to'. safety,'_ ·~r·. do'~~ . n9t' sfop. th~
•, -, ··~ .~ .. ,;;_.,.\;i:.;."'."i, ; .•• ~~ •. C.~·•· -~·· ~. ,,~,,,..,: ... ·.;., ,.(·,-.,_.,
ARIZONA . CbRPORA TiON COMMISSIO~ 31
same at pro.per places,'o'.r' does''not'run'.1an:Y. hain or' t~ain'S, ca'.for 'cars upbn
a reasonable .time .schedule :f<)r the run,: the CoII1missfon: shall .'have power
to make an order directing any such railroad .corporation ·or street'ratlrcad
corporation to increase the number of its trains or of its cars or its motive
power or. to change the time for starting its 'trains or cars or to change
the 'time schedule for the run of any· train or cars, or to change the stopping ·
place or places thereof, or ·to . make any' other 'order that . the Commission
niay determine to be 'reasonably necessary 'to aceomodate '(aecommodate)
and' transport." the trame, passenger or" freight; transported or _offered 'for
transportation. , · 1
·I
\ . Sec. 38,. , ·w11enever· the Cominisston, 'after a' hearing' had upon its' own
motion or upon complaint, 'shall find 'that' the:'publfc convenience .andneces­sity'
would be. subserved by liavlng 'connection's. made between the tracks
of any two or more railroad 'corporations, so that cars 'may. readily be
transferred from one to 'th'e· other: at 'any of tb.e''.points 'herefoaffer ''in this
section. specified,· 'the Commis~ion' ·~ay· order. ari~. two 'or "more such corpora­tions
owning, ·_con1roiling, ()i>erati~g or ·managing _tracks· of tlie same gau.ie
to make physicaf 'connections at'any' and 'alf cros'sillgs; an_d at" ali 'points
Where a ·railroad "or 'street' railroad ··shall begfo' or 'terminate or 'run 'near to
any '0th.er raili-o~d or· ~treet · ~ailr()·a.a. 'A.fter the· 'iiecessari franchise or pe·r:
mit has' been. secured rrom' 'the" city, 'courifr 'or town," the ccim~issioii may
likewise' 'order such' physic'a1 . c'oI1iiecdon, withiii' such. city, . county or. town,
~~~~·ee~ t"':o or. more ·railroads' which ente~' the limits of the' same. , The
Commission shall by order direct whether the expense of the connections
referred to in this section shall be born (borne) jointly or otherwise:
., Sec. 39. (a)" Whenever 'tJie Commfsstori, after a.· lieari~g had upon its
o~~ motion or upon complain( shall 'find that application has been m~de by a:ni . corporation or pe~son to 'a rai'load corpor'atfon for a' connection or spur
as provided ii{ Secfi'on twenty-fiv'e 'o{ this Ac( and 'that the' railroa(i'corpora­tion
has refosed tO p'rovide s~ch co'D.neciiori· ·~r. spur an.a· 'thafthe applicant
is .entitled, to . have' the sarne 'provided.. for . him· under said. Sectfon. twenty-five,
the' 6ornini'ssi0n ·shall 'make an order requfring the 1proviab1g of :sucli connec­tion
~or spur and 'the nia'iritenance and' use of 'the' same uiion reasonabie terms
~~!c~ ·t~e Co'm'missiOn shall have the powett~ 'prescribe~ Whenever. s~ch
con~ectiori. or sp'uf 'has been '·so provided,. any. corporatfoii" o,r . person 'shall
b_~ entitled fo connect with the priv~t'e' track, tracks or railroad thereby con­nected
with the railroad of th~ railroad corporation and to use the same or
to use the spur so provided upon payment to the party or parties incurring
the. Primary e:X::Pense of such :private· track, tracks ·or· :ranroaa,1 or· the· connec­ttori
'therewiUi' o:t Of such spur~ of a reasonab'le proportion'C>f the cost thereof
t'o ·l:Je'· determin~d . by. the ·commission a'ftet. notice·· to'. tile: interested'. parties
and a hearing thereon; provided, that such connection: and use ca:ri be'made
without unreasonable interference with the rights of the party or parties
i?Ictirrihg'. such'. primary expense;: • •; .•''. :. •:·~:· .•. ' ', .·> '!
· .~ .. Oh ' The'' Commissi:on··s hall likewise hav{ the· power fo r'equfre one"rail-
32 ARIZONA CORPORATION COMMISSION
road corporation to switch to private spurs and industrial tracks upon its
own railroad the cars of a connecting. railroad corporation and to prescribe
· the terms and· compensation ~or such service.
Sec. 40. Whenever the Commission, after a hearing had upon its own
·motion or upon complaint, shall find that a physical connection can reason­ably
be made between the lines. of two or more telephone corporations or
two or more telegraph corporations whose lines can be made to form a con­tinuous
line of communication by the construction and maintenance of suit·
able connections for the transfer of messages or conversations, and that
public convenience and necessity will be subserved thereby, or shall find
that two or more telegraph or telephone corporations have failed to estab- ·
lish joint rates, tolls or charges for service by or over their said lines, and
that joint rates, tolls or charges ought to be established, the Commission
may, by its order, require that such connection . be made, except where the
' purpose of such connection is primarily to secure the transmission of local
messages or conversations between points within the same city, or town,
and· that conversations be transmitted and messages transferred over such
connections under such rules and regulations as the Commission may estab­lish,
and prescribe through lines and joint rates, tolls and charges to. be
made, and to be used, observed and in force in the future. If such telephone
or telegraph corporations do not agree upon the division between them of
the cost of such physical connection or connections or the divisions of the
joint rates, tolls, or charges established by the Commission over such through
lines, the Commission shall have authority, after further hearing, to establish
such division by supplemental order.
Sec. 41. Whenever the Commission, after a hearing had upon its own
motion cir upon complaint of a public service corporation affected, shall
find that public convenience and necessity require the use by one public
service corporation of the conduits, sub-ways, tracks, wires, poles, pipes or
other equipment, or any part thereof, on, over, or under any street or high­way,
and belonging to another public service -corporatlon, and that such use
will not result in irreparable injury to owner or other users of such conduits,
sub-ways, tracks, wires, poles, pipes or other equipment or in any substantial
detriment to the service, and that such public service corporations have
. ·failed ·to agree upon such use or the terms and conditions or compensations
for the same, the Commission may by order direct that such use be permitted
and prescribe a reasonable compensation and reasonable terms and condi­tions
for the joint use. If such use be directed, the public service corpo­ration
to whom the use is permitted shall be liable to the owner or other
users of such conduits, sub-ways, tracks, wires, poles, pipes or other equip­ment
for such damage as may result therefrom to the property of such owner
or other 'users thereof.
Sec. 42. The Commission shall have power, after a hearing had upon
its . own motion or upon complaint, by ,•general or special orders, rules or
ARIZONA CORPORATION COMMISSION 33
regulations, or otherwise, to require every public service corporation to
maintain and operate its line, plant, system, equipment, apparatus, tracks
· and premises in such manner as to promote and safeguard the health and
safety of its employees, passengers, customers, and the public, and to this
end to prescribe, among other things, the installation, use, maintenance and
operation of appropriate safety or other devices or appliances, including inter­locking
and other protecting devices at grade crossings or junctions and
block or other systems of signalling, to establish uniform or other standards
of equipment, and to require the performance, of any other act which the
health or safety of its employees, passengers, customers or the public may
demand.
Sec. 43. (a) No public road, highway or street shall hereafter be
constructed across the track of any railroad corporation at grade, nor shall
the track of any railorad (railroad) corporation be constructed across a
public road, highway, or street at grade, nor shall the track of any railroad
corporation be constructed across the track of any other railroad or street
railroad corporation at grade, nor shall the track of a street railroad cor­poration
be constructed across the track of a railroad corporation at grade,
Without having first secured the permission of the Commission; provided,
that this sub-section shall not apply to the replacement of lawfully existing
tracks. The Commission shall have the right to refuse its permission or to
grant it upon such terms and conditions as it may prescribe.
(b) The Commission shall have the exclusive power to determine and
Prescribe the manner, including the particular point , of crossing, and
the terms of installation, operation, maintenance, use and protection of .eaeh
crossing of one railroad by another railroad or street railroad, and of a
street railroad by a railroad and of each crossing of a public road or higway
(highway) by a railroad or street railroad and of a street by a railroad or
vice versa, and to alter or abolish any such crossings, and to require where,
in its judgment, it would be practicable, a separation of grades at any such
crossing theretofore or hereafter established and to prescribe the terms upon
Which such separation shall be made and the proportions in which the ex­pense
of the alteration or abolition of such crossings or the separation of
such grades shall be divided . between the railroad or street railroad cor­porations
affected or between such corporations and the State, county,
municipality or other public authority in interest.
(c) Whenever the Commission shall, after a hearing had upon its
own motion or upon complaint, find that public convenience and necessity
demands the establishment, creation or construction of a crossing of a
street or highway over, under or upon the tracks or lines of any public
service corporation, the Commission may by order, decision, rule or decree
require the establishment, construction or creation of such crossing, and
said crossing shall thereupon become a public highway and crossing.
Sec. 44. The Commission shall investigate the cause of all accidents
• occurring within this State upon the property of any public service corpora-
34 ARIZONA CORPORATION COMMISSION
tion or directly or indirectly arising from or connected with its maintenance
or operation, resulting in loss of life or injury to persons or property and re­quiring,
in the judgment of the Commission, investigation by it, and shall .
have the power to make such order or recommendation with respect thereto
as in its judgment may seem just and reasonable; provided, that neither the
order or recommendation of the Commission nor any accident report filed
with the Commission shall be admitted as evidence in any action for damage
based on or arising out of the loss of life, or injury to person or property,
in this section referred to. Every public service corporation is hereby .re­quired
to file with the Commission, under such rules and regulations as the
Commission may prescribe, a report of each accident so occurring of such
kinds or classes as the Commission may from time· to time designate.
Sec. 45 (a) The Commission shall have power to provide by proper
rules and regulations the time within which all railroad corporations shall
' furnish, after demand therefor, all cars, equipment and facilities necessary
for the handling of freight in car load and less than car load lots, the time
within which consignors or persons ordering cars shall load the same, and
the time within which consignees or persons to whom freight may be con­signed
shall unload · and discharge the same and receive freight from the
freight rooms, and to provide penalties to be paid for failure on the part
of the railroad corporations, consignors and consignees, to conform to such
rule. Charges for demurrage shall be uniform so that the same penalty
shall be paid by both shipper or consignee and railroad corporation for an
equal number of cars for each day for which demurrage is charged.
(b) The Commission shall also have power to provide the time within
which express packages shall be received, gathered, transported and deliv­ered
at destination, and the limits within which express packages shall . be
gathered and distributed and telegraph and telephone messages delivered
without extra charge.
(c) The Commission shall also have power to provide the time within
which baggage shall be received, transported, delivered and stored. The
Commission shall have power to enforce reasonable regulations for the
weighing of cars and freight offered for shipment over any line of railroad,
and to test the weights made by any railroad corporation and scales used
in weighing freight on cars.
Sec. 46. (a) The Commission shall have power, after hearing had w:,>011
its own motion or upon complaint, to ascertain and fix just and reasonable
standards, classifications, regulations, practices, measurements, or service to
be furnished, imposed, observed and followed by all electrical, gas and
water corporations; to ascertain and fix adequate and serviceable standards
for the measurement of quantlty, quality, pressure, initial voltage or other
coadltton p :;rtaining lo the supply of the product, commodity · or service
furnished or rendered by any such public service corporation; to prescribe
reasonable regulations for the examination and testing of such product, com­modity
or service, and for the measurement thereof; to establish reasonable •
ARIZONA CORPORATION COMMISSION 35
rules, regulations, spectttcattons and standards to secure the accuracy of
all meters and appliances for measurements; and to provide for the exam­ination
and testing of any and all appliances used for the measurement of
any product, commodity or service of any such public service corporation.
(b) The Commission and their officers and employees shall have
power ·to enter upon· any premises occupied by any public service corpo­ration,
for the purpose of making the examinations and tests and exercising
any of the other powers provided for in this Act, and to set up and use on
such premises any apparatus and appliances necessary therefor. The
agents and employees of such public service corporation shall have· the
right to be present. at the making of 'such examinations and tests.
(c) Any consumer or user of any product, commodity or service of
a public service corporation may have any appliance used in the measure­ment
thereof tested upon paying the fees fixed by the Commission. The
Commission shall establish and fix reasonable fees to be paid for testing such
appliances on the request of the consumer or user, the fee to be paid by the
consumer or user at the time of his request, but to be paid by the public
service corporation and repaid to the consumer or user if the appliance is
found defective or incorrect to the disadvantage of the consumer or user,
under such rules and regulations as may be prescribed by the Commission.
Sec. 47. The Commission shall have power to ascertain the value
of the property of every public service corporation in this State, or . doing
or transacting business in this State, and every fact which in its judgment
may -or does have any bearing on such value. The Commission shall
have power to make revaluations from time to time and to ascertain all new
constructions, extensions and additions to the property of every public
service corporation.
Sec. 48. The Commission shall have power to establish a system of
accounts to be kept by the public service corporations subject to its
jurisdiction, or to classify said public service corporations and to establish
a system of accounts for each class, and to prescribe the manner in which
suca accounts shall be kept. It may also in its discretion prescribe the
forms of accounts, records and memoranda to be kept by such public service
corporations, including the accounts, records and memoranda of the move­ment
of traffic as well as the receipts and expenditures of moneys, and
any other forms, records and memoranda which in the judgment of the
Commission may be necessary to carry out any of the provisions of this
Act.
The system of accounts established by the Commission and the forms
of accounts, records and memoranda prescribed by it shall not be tnoon­sistent
in the case of corporations subject to the provisions of the act of
Congress entitled, "An Act to Regulate Commerce," approved February
fourth, eighteen hundred and eighty-seven, and the acts amendatory thereof
and supplementary thereto, with the system and forms from . time to time
established for such corporations by the interstate Commerce Commission,
36 ARIZONA CORPORATION COMMISSION
but nothing herein contained shall affect the power of the Commission to
prescribe forms of accounts, records and memoranda covering information
in addition to that required by the Interstate Commerce Commission. The
Commission, may, after hearing had upon its own motion or upon com­plaint,
prescribe by order the accounts in which particular outlays and
receipts shall be entered, charged or credited.
Whereas, the Commission has prescribed the forms of accounts, records
or memoranda to be kept by any public service corporation for any of its
business, it shall thereafter be unlawful for such public service corporation
to keep any accounts, records or memoranda for such business other than
those so prescribed, or those prescribed by, or under the. authority of any
other state, or of the United States, excepting such ~ccounts, records or
memoranda as shall be explanatory of and supplemental to the accounts,
records or memoranda prescribed by the Commission.
Sec. 49. The Commission shall have power, after hearing, to require
' any or all public service· corporations to carry a proper and adequate
depreciation account in accordance with such rules, regulations and forms
of account as the Commission may prescribe. The Commission may, from
time to time, ascertain and determine and by order fix the proper and
adequate rates of depreciation of the several classes of property of each
public service corporation. Each public service corporation shall conform its
depreciation accounts to the rates so ascertained, determined and fixed, and
shall set aside the moneys so provided for out of earnings and carry the
same in a depreciation fund and expend such fund only for such purposes
and under such rules and regulations, both as to original expenditure and
subsequent replacement as the Commission _ may prescribe. The income
upon investments of moneys in such fund shall likewise be carried in
such fund.
Sec. 50. (a) No street railroad corporation, gas corporation, electrical
corporation, telephone corporation or water corporation shall henceforth
begin the construction of a street railroad, or of a line, plant or system,
or of any extension of such street railroad or line, plant, or system, without
having first obtained from the Commission a certificate that the present or
future public convenience and necessity require or will require such con­struction;
provided, that this section shall not be construed to require
any such corporation to secure such certificate for an extension within any
city, county or town within which it shall have theretofore lawfully com­menced
operations, or for an extension into territory either within or
without a city, county or town, contiguous to its street railroad or line,
plant or system, and not theretofore served by a public service corporation
of like character, or for an extension within or to territory already served
by it, necessary in the ordinary course of its business; provided, further,
that if any public service corporation, in constructing or extending its line,
plant or system, shall interfere or be about to interfere with the operation
of the line, plant or system of any other public service corporation, al-
ARIZONA CORPORATION COMMISSION 37
ready constructed, the Commission, on complaint of the public service
corporation claiming to be injuriously affected, may, after hearing, make
such order and prescribe such terms and conditions for the location of the
lines, plants, or systems affected as to it may seem just and reasonable.
(b) · No public service corporation. of a class specified in sub-section
(a) hereof shall henceforth "exercise any right or privilege under any fran­chise
or permit hereafter granted, or under any franchise or permit hereto­fore
granted but not heretofore actually exercised, or the exercise of which
have· been suspended for more than one year, without first having obtained
from the Commission . a certificate that public . convenience and necessity
require the exercise of. such right or privilege; provided, that when the
Commission· shall find, after hearing, that a public service corporation has
. heretofore begun actual construction work and is prosecuting such work,
in good faith, uninterruptedly and with reasonable diligence in proportion
to the magnitude of the undertaking, under any franchise or permit hereto­fore
granted but not heretofore actually exercised, such public service
corporation may proceed, under such rules and regulations as the Com­mission
may prescribe, to the completion of such work, and may, after
such completion, exercise such right or privilege; and provided, further, that
this section shall not be construed to validate any right or privilege
now invalid or hereafter becoming invalid under any law of this State.
(c) Before any certificate may issue,· under this section, a certified
copy of its articles of incorporation or charter, if the applicant· be a
corporatjon, shall be filed in the office of the Commission. Every applicant
for a certificate shall file in the office of the Commission such evidence
as shall be required by the Commission to show that such applicant has re­ceived
the required consent, franchise or permit of the proper county, city
and county, municipal or other public authority. The Commission shall
have power, after hearing, to issue said certificate, as prayed for, or to re­fuse
to issue the same, or to issue it for the construction of a portion only
of the contemplated street railroad, line, plant or system.: or extension
thereof, or for the partial exercise only of said right or privilege, and may
attach to the exercise of the rights granted by said certificate such terms
and conditions as in its judgment the public convenience and necessity may
require. If a public service corporation desires to exercise a right or privi­lege
under a franchise or permit which it contemplates securing, but which
bas not yet been granted to It, such public service corporation may apply .
to the Commission for an order preliminary to the issue of the certificate.
The Commission may thereupon make an order declaring that it will there­after,
upon application, under such rules and regulations as it may prescribe,
issue the desired certificate, upon such terms and conditions as it may
designate after the public service crporation has obtained the contem­plated
franchise or permit. Upon presentation to the Commission of
evidence satisfactory to it that such franchise or permit has been secured by
such public service corporation, the Commission shall thereupon issue such
certificate.
38 ARIZONA CORPORATION COMMISSION
Sec. 51. (a) . No railroad corporation, street railroad corporation, pipe
line corporation, gas corporation, electrical corporation, telephone corpora­tion,
telegraph corporation, or water corporation shall henceforth sell, lease,
assign, mortgage or otherwise dispose of or encumber the whole· or any part
of its railroad, street railroad, line, plant or system, necessary or useful in the
performance of its duties to the public, or any franchise or permit or any
right thereunder, nor by any means whatsoever, direct or indirect, merge
or consolidate its railroad, street railroad, line, plant or system, or fran­chises
or permits or any part thereof, with any other public service corpora­tion,
without having first secured from the Commission an order authorizing
it so to do. Every such sale, lease, assignment, mortgage, disposition, en­cumberance
(encumbrance) merger or consolidation made other than in
accordance with the order of the Commission authorizing the same shall be
void. The permission and approval of the Commlssion to the exercise of
a franchise or permit under Section fifty of this Act, or the sale, lease,
assignment, mortgage or other disposition or encumberance (encumbrance)
of a franchise or permit under this section shall not be construed to revive or
validate any lapsed or invalid franchise or permit, or to enlarge or add to
the powers or privileges contained in the grant. of any franchise or permit,
or to waive any forfeiture. Nothing in this sub-section contained shall be
construed to prevent the sale, lease, or other disposition by any public service
corporation of a class designated in this sub-section of property which is not
necessary or useful in the performance of its duties to the public, and any
sale of its property by such public service corporation shall be conclusively
presumed to have been of property which is not useful or necessary in
the performance of its duties to the public, as to any purchaser of such
property in good faith for value.
(b) No public service corporation shall hereafter purchase or acquire,
take or hold, any part of the capital stock of any other public service cor­poration,
organized or existing under or by virtue of the laws of this State,
without having been first authorized to do so by the Commlsston. Every
assignment, transfer, contract, or agreement for assignment or transfer
of any stock by or through any person or corporation to any corporation or
otherwise in violation of any of the provisions of this section shall be void
and of no effect, and no such transfer shall be made on the books of any
public service corporation. Nothing herein contained shall be construed to
prevent the holding of stock heretofore lawfully acquired.
Sec. 52. (a) The power of public service corporations to issue stocks
and stock certificates, and bonds, notes, and other evidences of indebtedness
and to create liens on their property situated within this State is a special
privilege, the right of supervision, regulation, restriction and control of
which is and shall continue to be vested in the State, and such power shall
be exercised as provided by law, and under such rules and regulations as the
Commission may prescribe.
(b) A public service corporation may issue stocks and stock certificates,
and bonds, notes and other evidences of indebtedness payable at periods
ARIZONA CORPORATION COMMISSION 39
'ot more than twelve months after the date thereof, for the following
purposes and no other, namely, for. the acquisition of property, or for
the construction, completion, extension or improvement of its facilities,
or for the improvement or maintenance of its service, or for the discharge
or lawful refunding of its obligations or for the reimbursement of moneys
actually expended from income or from any other. moneys in the treasury
of the public service corporation not secured by or obtained from the issue
of stocks or stock certificates, or bonds, notes or other evidence of indebt­edness
of such public service corporation, within. five years next prior to
the filing. of an application with the Commission for the required author­ization,
for any of the aforesaid purposes except maintenance of service and
replacements, in cases where the applicant shall have kept its accounts and
vouchers for such expenditures in such manner as to enable the Commission
·to ascertain the amount 'of moneys so expended and the purpose for which
such expenditure was made; provided, that such public service corporation,
in additton to the other requirements of law, shall first have secured trom
the Commission an order authorizing such issue· and stating the amount
thereof and the purpose or purposes to which the issue or the. proceeds
thereof are to be applied, and that, in the opinion of the Commission, the
money, property -or labor to be procured or paid for by such issue is rea­sonably
required for the purpose or purposes specified in the order, and
that, except as otherwise permitted ·in the order in the case of bonds, notes
or other evidences of indebtedness, such purpose or purposes are not, in
Whole or in. part, reasonably chargeable to operative expenses or to income.
To enable it to determine whether it will issue such order, the Commission
shall hold a hearing and may make such additional inquiry or investigation,
and examine such witnesses, books, papers, documents and contracts and
require the filing of such data as it may deem of assistance. The Com­mission
may by its order grant permission for the issue of such stocks or
stock certificates; or bonds, notes; or other evidences of .indebtedness in
the amount applied for, or in a lesser amount, or not at all, and may attach
to the exercise of its permission such condition or conditions ·as it may
deem reasonable and necessary. The Commission may authorize issues
of bonds, notes or other evidences of indebtedness, less than, equivalent to
or greater than the authorized or subscribed capital stock of a public service
corporation, and the provisions of the general law of this State, in so far
as they contain inhibitions against the creation by corporations of Indebt­edness,
evidenced by bonds, notes or otherwise, in excess of their total
authorized or subscribed· capital stock shall have no application to public
service corporations. No public service corporation shall, without the con·
sent of the Commission, apply the issue of any stock, or stock certificate,
or bond, note or other evidence of indebtedness, or any part thereof, or
any proceeds thereof, to any purpose not specified in the Commission's order,
or to any purpose specified in the Commission's order in excess of the
amount authorized for such purpose, or issue or dispose of the · same on
any terms less favorable than those specified in such order, or a modifica­tion
thereof. A public service corporation may issue notes, for proper
40 ARIZONA CORPORATION COMMISSION
purposes, and not in violation of any provision of this Act or any· other
act, payable at periods of not more than twelve months after the date
of issuance of the same, without the consent of the Commission, but no
such note shall, in whole or in part, be refunded by any issue of stocks
or stock certificates, or of bonds, notes of any term or character or any
other evidence of indebtedness, without the consent of the Commission.
The Commission shall have no power to authorize the capitalization of
the right to be a corporation, or to authorize the capitalization of any
franchise or permit whatsoever, or the. right to own, operate or enjoy any
such franchise or permit, in excess of the amount (exclusive of any tax
or annual charge) actually paid to the State or to a political subdivision
thereof as the consideration for the grant of such franchise, permit or right;
nor shall any contract for consolidation or lease be capitalized, nor shall
any public service corporation hereafter issue any bonds, notes or other
evidences of indebtedness against or as a lien upon any contract for
consolidation or merger.
{c) The Commission shall have the power to require public service
corporations to account for the disposition of the proceeds of all sales of
stocks and stock certificates, and bonds, notes and other evidences of
indebtedness, in such form and detail as it may deem advisable, and to estab­lish
such rules and regulations as it may deem reasonable and necessary
to insure the disposition of such proceeds for the purpose or purposes
specified in its order.
( d) All stock and every stock certificate, and every bond, note or
other evidence of indebtedness, of a public service corporation, issued with­out
an order of the Commission authorizing the same then in effect shall
be void, and likewise all stock and every stock certificate, and every bond,
note or other evidence of indebtedness, of a public service corporation, issued
with the authorization of the Commission, but not conforming in its provi­sions
to the provisions, if any, which it is required by the order of authoriza­tion
of the Commission to contain, shall be void; but no failure in any other
respect to comply with the terms or conditions of the order of authorization
of the Commission shall render void any stock or stock certificate, or any
bond, note or other evidence of indebtedness, except as to a corporation or
person taking the same otherwise than in good faith and for value and
without actual notice.
(e) Every public service corporation which, directly or indirectly,
issues or causes to be issued, any stock or stock certificate, or bond, note
or other evidence of indebtedness, in non-conformity with the order of the
Commission authorizing the ·same, or contrary to the provisions of this
Act, or of the Constitution of this State, or which applies the
proceeds from the sale thereof, or any part thereof, to any purpose other
than the purpose or purposes specified in the Commission's order, as herein
provided, or to. any purpose specified in the Commission's order in excess
of the amount in said order authorized for such purpose, is subject to a
penalty of not less than five hundred dollars nor more than twenty thousand
dollars for each offense.
ARIZONA CORPORATION COMMISSION 41
(f) Every officer, agent or employee of a public service corporation,
and every other person who knowingly authorizes, directs, aids in, issues
or executes, or causes to be issued or executed, any stock or stock certificate,
or bond, note or other evidence of indebtedness, in non-conformity with
the order of the Commission authorizing the same, or contrary to the pro­visions
of this Act, or of the Constitution of this State, or who in any pro­ceeding
before the Commission, knowingly makes ·any false statement or
representation or with knowledge of its falsity files or causes to be filed with
the Commission any false statement or representatin, which said statement
or representation so made, filed or caused to be filed may tend in any way
·to influence the Commission to make an order authorizing the issue of any
stock or stock certificate, or any bond, note or other evidence of indebt­edness,
or which results in procuring from the Commission the making of
any such order, or who, with knowledge that any false statement or repre­sentation
was made to the Commission, in any proceeding, tending in any
way to influence the Commission to make such order, issues or executes or
negotiates, or causes to be issued', executed or negotiated any such stock or
stock certificate,. or bond, note or other evidence of indebtedness, or who, ·
directly or indirectly, knowingly applies or causes or assists to be applied
the proceeds of any part thereof, from the sale of any stock or stock certi­ficate,
or bond, note or other evidence of indebtedness, to any purpose not
specified in the Commission's order, or to any purpose specified in the
Commission's order in excess of the amount authorized for such purpose,
or who, with knowledge that any stock or stock certificate, or bond, note or
other evidence of indebtedness, has been issued or executed in violation of
any of the provisions of this Act, negotiates, or causes the same to be nego­tiated,
shall be guilty of a felony, and on conviction thereof, shall be impris­oned
in the State penitentiary for a term not less than two years and not
more than ten years.
(g) No privisions (provisions) of this Act, and no deed or act done
or performed under or in connection therewith, shall be held or construed
to obligate the State of Arizona to . pay or guarantee, in anY: manner what­soever,
any stock or stock certificate, or bond, note or other evidence of
indebtedness authorized, issued or executed under the provisions of this Act.
(h) All stocks and stock certificates, and bonds, notes, and other evi­dence
of. indebtedness issued by any public service corporation after this
Act takes effect, upon the authority of any articles of incorporation or
amendments thereto or vote of the stockholders or directors filed, taken
or had, or other proceeding taken or had, previous to the taking effect
of this Act, shall be void, unless an order of the Commission authorizing the
issue of such stocks or stock certificates, or bonds, notes or other evidences
of indebtedness, shall have been obtained from the Commission prior to
such issue. The Commission may by its order impose such condition or
conditions as it may deem reasonable and necessary.
Sec. 53. All hearings and investigations before the Commission or any
Commissioner shall· be governed by this Act and by rules of practice and
42 ARIZONA CORPORATION COMMISSION
procedure to be adopted by the Commission and in conduct thereof neither
the Commission nor any Commissioner shall be bound by the technical rules
of. evidence. No informality in any proceeding or in the manner of taking
testimony before the Commission or any Commissioner shall invalidate any
order, decision, rule or regulation made, approved or confirmed by the
Commission.
Sec. 54. The Commission and each Commissioner shall have power
to issue writs or summons, subpoenas, warrants of attachment, warrants of
commitment and all necessary process in proceedings for contempt, in the
like manner and to the same extent as courts of record. The process issued
by the Commission, or any Commissioner shall extend to all parts of the
State and may be served by any person authorized to serve process of courts
of record, or by any person designated for that purpose by the Commission
or a Commissioner. The person executing any such processes shall receive
such compensation as may be allowed.by l~w.
Sec. 55. (a) The Commission and each Commissioner shall have
power to administer oaths, certify to all official acts, and to issue subpoenas
for the attendance of witnesses and the production of papers, waybills, books,
accounts, documents, and testimoney (testimony) in an. inquiry, investiga­tion,
hearing or proceeding in any part of the State. Each witness who shall
appear, by order of the Commission or a Commissioner, shall receive for his
attendance the same fees allowed by law to a witness in civil cases, which
amount shall be paid by the party at whose request such witness is
subpoenaed. When any witness who has not ·been required to attend at
the request of any party shall be subpoenaed by the Commission, his fees
shall be paid from the fund appropriated for the use of the Commission
in the same manner as other expenses of the Commission are paid. Any
witness subpoenaed except one whose fees may be paid from the funds of the
Commission, may, at the time of service, demand the fee to which he is
entitled for travel to and from the place at which he is required to appear,
and one day's attendance. If such witness demands such fees at the time
of service, and they are not at that time paid or tendered, he shall not be
required to attend before the Commission, or Commissioner, as directed
in the subpoena .. All fees to which any witness is entitled under the provi­sions
of this section may be collected by action therefor instituted by the
person to whom such fees are payable.
No witness furnished with free transportation shall receive mileage
for the distance he may have traveled on such free transportation.
(b) The Superior Court in and for the county in which any inquiry,
investigation, hearing or proceeding may be held by the Commission; or
any Commissioner, shall have the power to compel the attendance of
witnesses, the giving of testimony, and the production of papers, including
way bills, books, account and documents, as required by any subpoena issued
by .the Commission or any Commissioner. The Commission or the Commis­sioner
before whom the testimony is to be given or produced, in case of the
ARIZONA CORPORATION COMMISSION 43
refusal of any witness to attend or . testify or produce any papers required
by such subpoena, may report to the Superior Court in and for the· county
in which the proceeding is pending, by petition, setting forth that due notice
has been given of the time and place of attendance of said witness, or the
production of said papers, and that the witness has been summoned in the
manner prescribed in this Act, and that the witness has failed and refused
to attend or produce the papers required by the subpoena, before the Com­mission
or Commissioner, in the cause or proceeding· named in the notice
and subpoena, or has refused to answer questions propounded to him in
the course of such proceeding, and ask an order of said court, compelling
the witness to attend and testify or produce said papers before the Com­mission.
The court, upon the petition of the Commission or such .Commis­sioner,
shall enter an order directing the witness to appear before the
court at a time and place to be fixed by the court in such order, the time
to be not more than ten days from the date of the order, and then and there
show cause why he has not attended and testified or produced said papers
before the Commission. A copy of said order shall be served upon said
v'rtness, If it· shall appear to the court that said subpoena was regularly
is:~ued by . the Commission or a Commissioner, the court shall thereupon
enter an order that said witness appear before the Commission or said
Commissioner at the time and place fixed in said order, and testify or
Produce the required· papers, and upon failure to obey said order, saici
witness shall be dealt with as for contempt of court. 'l'he remedy provided
in this sub-section is cumulative and shall not be construed to impair or
interfere with the power of the Commission or a Commissioner to enforce
the attendance of witnesses and the production of papers, and to punish for
contempt in the same manner and to the same extent as courts of record.
(c) The Commission or any Commissioner or any party may, in any
investigation or hearing before the Commission, cause the deposition of
Witnesses residing within or without the State to be taken in the manner
Prescribed by law for like deposition in civil actions in the Superior
Courts of this State, and to that end may compel the attendance of witnesses
and the production of books, way bills, documents, papers and accounts.
(d) No person shall be excused from testifying or from producing any
book, way bill, document, paper or account in any investigation or inquiry
by or hearing before the Commission or any ·Commissioner, when ordered
to do so, upon the ground that the testimony or evidence, book, way bill, docu­ment,
paper or account required of him may tend to incriminate him or sub­ject
him to penalty or forfeiture, but no person shall be prosecuted, punished
or subjected to any penalty or forfeiture for or on account of any act,
transaction, matter or thing concerning which he shall, under oath have
testified or produced documentary evidence; provided, that no person so
testifying shall be exempt from prosecution or punishment for any perjury
committed by him in his testimony. Nothing herein contained shall be con- ,
struecl as in any manner giving to any public service corporation immunity
of any kind.
44 ARIZONA CORPORATION COMMISSION
Sec. 56. (a) Copies of all official documents and orders filed or de­posited
according to law in the office of the Commission, certified by a
Commissioner, or by the secretary under the official seal of the Commission
to be true copies of the original, shall be evidence in a like manner as the
originals.
(b) ·Every order, authorization or certificate, issued or approved by·
the Commission under any provision of Sections 38, 39, 40, 41, 43, 50, 51 or 52,
of this Act, shall be in writing and entered on the records of the Com­mission.
Any such order, authorization or certificate, or a copy thereof, or
a copy of the record of any such order, authorization or certificate, certified
by a Commissioner, or by the secretary under the official seal of the Com­mission
to-. be a true copy of the original order, authorization, certificate or
entry, may be recorded in the office of the county recorder of any county
in which is located the principal place of business of any public service
corporation affected thereby, or in which is situated any property of any
such public service corporation, and such record shall impart notice of its
provisions to all persons. A certificate under the seal of the Commission
that any such order, authorization or certificate has not been modified,
stayed, suspended or revoked may also be recorded in the same offices in
the same manner and with like effect.
Sec. 57. The Commission shall charge and collect the following fees:
For copies of papers and records not required to be certified or otherwise
authenticated by the Commission, fifteen cents for each folio; for certified
copies of official documents and orders filed in its o·ffice, twenty cents for
each folio and. two dollars for every certificate under seal affixed thereto;
for certifying a copy of any report made by a· public service corporation,
two dollars; for each certified copy of the annual report of the Commission,
three dollars; for certified copies of evidence and proceedings before the
Commission, fifteen cents for each folio; for certificate authorizing an
issue of bonds, or other evidences of indebtedness, one dollar for each
thousand dollars of the face value of the authorized issue or fraction thereof
up to one million dollars, and fifty cents for each one thousand dollars
over one million dollars and up to ten million dollars, and twenty-five cents
for each one thousand dollars over ten millton dollars, with a minimum fee
in any case of Thirty-five Dollars ($35.00); provided, that no fees shall be
required when such issue is made for the purpose of guaranteeing, taking
over, refunding, discharging or retiring any bond, note or other evidence of
indebtedness up to the amount of the issue guaranteed, taken over, re­funded,
discharged or retired. No fee shall be charged or collected for
copies of papers, records, or official documents, furnished to public officers
for use in their official capacity, or for the annual reports of the Com­mission,
in the ordinary course of distribution, but; the Commission may fix
reasonable charges for publications issued under its authority. All fees
charged and collected under this section shall be paid, at least once each
week, accompanied by a detailed statement thereof into the treasury of
the State to the credit of the general fund.
ARIZONA CORPORATION COMMISSION 45
Sec. 58. The Commission, each commissioner and each officer and
person employed by the Commission shall have the right, at any and all
times, to inspect the accounts, books, papers and documents of any public
service corporation, and the Commission, each commissioner and any officer
of the Commission or any employee authorized to administer oaths shall
have power to examine under oath any officer, agent, or employee of such
Public service corporation in ·relation to the business and affairs of said
public service corporation; provided, that any person other than a com­missioner
or an officer of the Commission demanding such inspection shall
• Produce under the hand and seal of the Commission his authority to make
such Inspectlon ; and, provided, further, that a written record of the testi­mony
or statement so given under oath shall be made and filed with the
Commission.
' Sec. 59. The Commission may require, by order served on any public
corporation in the manner provided herein for the service of orders, the pro­duction
within this State at any such time and place as it may designate, of
any books, accounts, papers, or records kept by said public service corpo­ration
in any office or place without this State, or, at its option, verified
copies in lieu thereof, so that an examination thereof may be made by
the Commission or under its direction. -
se·c. 60. Complaint may be made by the Commission of its own motion
or by any corporation or persons, chamber of commerce, board of trade,
or any civic, commercial, mercantile, traffic, agricultural or manufacturing
association or organization or any body politic or municipal corporation,
by petition or complaint in writing, setting forth any act or thing done or
omitted to be done by any public service corporation including any rules,
regulation or charges heretofore established or fixed by or for any public
service corporation, in· violation, or claimed to be in violation, of any
Provision of law or of any order or rule of the Commission; provided, that
no complaint shall be entertained by the Commission, except upon its own
motion, as to the reasonableness of any rates or charges of any gas,
electrical, water, or telephone corporation, unless the same be signed by the
mayor or a majority of the council, Commission, or other legislative body
of the city or town, if any, within which the alleged violation occurred. or
not less than twenty-five consumers or purchaser or prospective consumer
or purchasers, of such gas, electricity, water or telephone service. All
matters upon which complaint may be founded may be joined in one hear­ing,
and no motion shall be entertained against a complaint for misjoinder
of causes of action or grievances or misjoinder or non-joinder of parties
and in any review by the court of orders or decisions of the Commission
the same rule shall apply with regard to the· joinder of causes and
Parties as herein provided. The Commission shall not be required to
dismiss any complaint because of the absence of direct damage to the
complainant. Upon the filing of a complaint, the Commission shall cause
a copy thereof to be served upon the corporation or person complained of.
46 ARIZONA CORPORATION COMMISSION
All public service corporations, domestic or foreign, doing, transacting or
soliciting any business in this State, shall appoint a bona fide resident of
this State, who has been a resident of this State for at least three years, its
agent, upon whom all notices, orders, decrees, charges and processes, in­cluding
service of summons, may be served, and when so served, shall be
taken and held to be lawful personal service on such corporation. Such
appointment of agent shall be filed in the office of the Corporation Com­mission.
Service may likewise be had in accordance with the ·provisions
of the general laws of this State, and may be made personally or by mailing
in a sealed envelope, registered, with postage prepaid. No irregularity re- •
garding service shall be used by any public service corporation as a ground
of excuse or defense. The Commission shall fix the time when and· the
place where a hearing 'will be had upon the complaint and shall serve notice
thereof, not less than ten days before the time set for such hearing, unless
the Commission shall find that the public necessity requires that such
hearing be held at an earlier date.
Sec. 61. (a) At the time fixed for any hearing before the Commission
or a Commissioner, or the time to which the same may have been continued,
the complainant and the corporation. or persons complained of, and such
corporations or persons as the Commission may allow to intervene, shall
be entitled to be heard and to introduce evidence. The Commission shall
issue process to enforce the attendance of all necessary witnesses. · After
the conclusion of the hearing, the Commission shall make and file its order,
containing its decision. A copy of such order, certified under the seal
of the Commission, shall be served upon the corporation or person complained
of, or his or its attorney. .Said order shall, of its own force, take effect
and become operative twenty days after the service thereof, except as
otherwise provided, and shall continue in force either for a period which
may be designated therein or until changed or abrogated by the Commission.
If an order cannot in the judgment of the Commisston, .be complied with
within twenty days, the Commission may grant and prescribe such addi­tional
time as in its judgment. is reasonably necessary to comply with
the order, and may on application and for good cause shown, extend the
time for compliance fixed in its order. A full and complete record of all
proceedings had before the Commission or any Commissioner on any formal
hearing had, and all testimony shall be taken down by a reporter appointed
by the Commission, and the parties shall be entitled to be heard in person
or by attorney.
Sec. 62. Any public service corporation shall have a right to com­plain
on any of the grounds upon which complaints are allowed to be filed
by other parties, and the same procedure . shall be adopted and followed
as in other cases except that the complaint may be heard, ex parte by the .
Commission, or may be served upon any parties designated by the Com-mission.
·
Sec. 63. (a) No public service corporation shall raise any rate, fare,
ARIZONA CORPORATION COMMISSION 47
toll, rental or charge or so alter any classification, contract, practice, rule
or regulation as to result in an increase in any rate, fare, toll, rental or
charge, under any circunstances (circumstances) whatsoever, except upon
a showing before the Commission and a finding by the Commission that
such· increase is justified. ·
(b). Whenever there shall be filed with the Commission any schedule
stating an individual or joint rate, fare, toll, rental, charge, classlflcatlon,'
contract, practice, rule or regulation, not increasing or resulting in an in·
crease in any rate, fare, toll, rental or charge, the Commission shall have
Power, and it is hereby given authority, either upon complaint or upon its
own initiative without complaint, at once, and if it so orders, without answer
or other formal pleadings, by the interested public service corporation or
corporations, but upon reasonable notice, to enter upon a hearing concern­ing
the propriety of such rate, fare, toll, rental, charge, classification, con­tract,
practice, rule or regulation, and pending the hearing and the decision
thereon such rate, fare, toll, rental, charge, classification, contract, practice,
rule or regulation shall not go into effect; provided, that the period of sus­pension
of such rate, fare, toll, rental, charge, classification, contract, prac­tice,
rule or regulation shall not extend beyond one hundred and twenty
days beyond the time when such rate, fare, toll, rental, charge, classification,
contract, practice, rule or regulation would otherwise go into effect unless
the Commission, in its discretion, extends the period of suspension for a
further period not exceeding six. months; On such h

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,------*--- -~,
I
. . . OF THE· . . . .. . • · 1
Arizona.Corporation Commission I
I I
; I
I
I
- 'A"Q. Artz~na,9 ta-~ Press- ~~ PhoeDU, Aruon'Cal IOt-I* 18~1,9~1 191JII
06
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First Annual Report
,• .. ,.
State of Arizona
for the period
February 14, 1912 to December 1, 1913
Published by Board of Control. by authority of Chapter
. 53. Session Laws of the Second Special Session
of tile First State Legislature
y
:) '
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l-
1,
First Annual Report of the
Arizona Corporation Commission
ARIZONA CORPORATION . COMMISSION
• Phoenix, Ariz., December 1, 1913.
. Hon. Geo. W. P. Hunt, Governor.
Phoenix, Arizona.
His Excellency: We have the honor to submit the report of the
Arizona Corporation Commission for the period beginning February 14,
1912, and ending December 1, 1913.
· It is obvious that the work performed by this Commission is increasing
daily, and probably no other railway or corporation commission in the
country has as great and varied an amount of duties to perform.
We have sub-divided the report herein, not only as to the duties of this
Commission performed in causes intrastate, but likewise as to such pro­ceedings
as have been instituted before the Interstate Commerce Com­mission.
In closing, we will request that you kindly· examine the report in detail,
and the financial report relative to fees collected as well.
(Seal)
· Respectfully submitted,
. ARIZONA CORPORATION COMMISSION.
W. P. GEARY,
Chairman.
A. W. COLE,
F. A. JONES,
Commissioners.
Attest:
FRANK DE 'SOUZA,
Secretary.
•
ARTICLE XV.
Arizona· State Constitution
L· ( l } ) ;'
1.
EXTRACTS FROM THE CONSTITUTION
ARTICLE XV.
The Corporation Commission.
Sec. l. A Corporation Commission is hereby created to be composed
of three persons, who shall be elected at the. general election to be held
under the provisions of the Enabling Act approved June 20, 1910, and whose
. term of office shall be co-terminous with that. of the Governor of the State
elected at the same time, and who shall maintain their chief office, and
reside, at the State Capitol. At the first general State election held under
this Constitution ·at which a Governor is voted for, three commissioners
shall be elected who shall; fromand after the first Monday in January next
succeeding said election, hold office as follows:
The one receiving the highest -number of votes shall serve six years,
and the one receiving the second highest number of votes shall serve four
years, and the one receiving the third highest number of votes shall serve
twovears, 'And one commisaioner shall be elected every two years there-.
after:' 'In' ease of vac:ancy in sa'.id dffice,1 the' Governor shall: appoint a; com­missioner
to fill such vacancy. Such appointed commissioner shall fill such
vacancy until a commissioner shall be elected at a general election as pro­vided
by law, and shall qualify; The qualifications of commissioners may
be prescribed by law.
Sec. 2. All corporations other than municipal engaged in carrying per­sons
or property for hire; or in furnishing gas, oil, or electricity for light,
fuel, or power; or in furnishing water for irrigation, fire protection, or other
public purposes; or in furnishing, for profit, hot or cold air or steam for
heating or cooling purposes; or in transmitting messages or furnishing
public telegraph or telephone service, and all corporations other than
municipal, operating as common carriers, shall be deemed public service
corporations.
Sec. 3. The Corporation Commission shall have full power to, and
shall, prescribe just and reasonable classifications to be used, and just
and reasonable rates and charges to be made and collected by public
service . corporations within the State for service rendered therein, and
niake reasonable rules, ·regulations and orders, by which such corporations
· shall be governed in the transaction of business within the State, and may
prescribe the forms of contracts and the systems of keeping accounts to
8 ARIZONA CORPORATION COMMISSION,
be used by such corporations in transacting such business, and make and
enforce reasonable rules, 'regulations and orders for the convenience, com­fort
and safety, and the preservation of the health of the employees and
patrons of such corporations; Provided, that incorporated cities and towns
may be authorized by law to exercise supervision over public service corpor­ations
doing business therein, including the regulation of rates and charges
to be made and collected by such corporations; Provided further, that
classifications, rates, charges, rules, regulations, orders and forms or sys­tems
prescribed or made by said Corporation Commission may from time
to time be amended or repealed by such Commission.
Sec. 4. The Corporation Commlaston, and the several members thereof,
shall have power to inspect and investigate the property, books, papers,
business, methods and affairs of any corporation whose stock shall be
offered for sale to the public, and -of any public service corporation doing
business within the State, and for the purpose, of the Commission, and of
the several members thereof, shall have the , power of a court of generaf
jurisdiction to enforce the attendance .of witnesses and the production of
evidence by subpoena, attachment and punishment, which said power shall
extend throughout the, State. Said Commission .shall have power to take
testimony under commission or deposition either within or without the
State.
Sec. 5. The Corporation Commission shall have the sole power to
issue certificates of incorporation to companies organizing under the laws
of this State, and to issue licenses to foreign corporations to do business
in this State, as may be prescribed by law.
Sec. 6. The law-making power may enlarge the powers and extend
the duties of the Corporation Commission, and may prescribe rules and
regulations to govern proceedings instituted by and before it; but, until such
rules and regulations are provided by law, the Commission may make rules
and regulations to govern such proceedings.
Sec. 7. Every public service corporation organized or authorized under
the laws of the State to do any tansportation or transmission business within
the State shall have the right to construct and operate lines connecting
any points within the State, and to connect ,at the State boundaries with
like llnes r. and every such corporation shall have the right with any of its
lines to cross, intersect, or connect with, any lines of any other public
service corporation.
Sec. 8. Every public service corporation doing a transportation busi­ness
within the State shall receive and transport, without delay or , dis­crimination,
cars loaded· or empty,. property, or passengers delivered to It
by any other public service corporation doing a similar business, and de·
liver cars, loaded or empty, without delay or discrimination, to other
ARIZONA CORPORATION COMMISSION
transportation corporations, under such regulations as shall be prescribed
by the Corporation Commission, or by law.
Sec. 9. Every public service corporation engaged in the· business of
Lransrni ttf ng messages for profit shall receive and transmit, without delay
or discrimination, any messages delivered to it by any other public service
corporation engaged in .the business. of transmitting messages for profit,
and shall, with its lines, make· physical connection with the lines of any
public service corporation engaged in the business of transmitting messages
for profit, under such rules and regulations as shall be prescribed by the
Corporation Commission, or by lawt Provided, that such public service
corporations shall deliver messages to other such· corporations, without
delay or discrirninatlon, under such rules and regulations as shall be pre­scribed
by the Corporation Commission, or by law.
Sec. 10. Railways heretofore constructed, or that may hereafter be
constructed in this State, are hereby· declared public highways, and all
railroads, car, express, electric, transmission, telegraph, telephone or pipe
line corporations, for the transportation of persons, or of. electricity, mes­sages,
water, oil or other property· for profit, are declared to be common
carriers and subject to control by law.
Sec. 11. The rolling stock and all other movable property belonging
to any public service corporation in this State, shall be considered personal
Property, and its real and personal property, and every part thereof, shall be
liable· to attachment, execution and sale in the same manner ·as the prop­erty
of individuals; and the law-making power shall enact no laws exempting
any such property from attachment, execution, or sale.
Sec. 12. All charges made for service rendered, or . to be rendered by
public service corporations within this State shall be Just and reasonable,
and no discrimination_ in charges, service, or facilities shall be made be- .
tween persons or places for rendering a like and contemporaneous service,
except that the granting of free or reduced rate· transportation may be
authorized by law, or by the Corporation Commission, to the classes· of
persons described in the Act of Congress approved February, 11, 1887, _en-.
titled An Act to Regulate· Commerce, and the amendments thereto, as those
to whom free or reduced rate. transportation may be granted.
Sec. 13. All public service corporations and corporations whose stock
shall be offered for sale to the public shall make such reports to the Cor­.
norauon Commission, under oath, and provide such information concerning
their acts and operations as may be required by law, or by the Corporation
Commission.
Sec. 14. The Corporation Commission shall, to aid it in the proper dis­charge
of its duties, ascertain the fair value of the property within the
10 ARIZONA CORPORATION COMMISSION
State of every public service corporation doing business therein; and every
public service corporation doing business within the State shall furnish to
the Commission all evidence in its possession, and all assistance in its
power, requested by the Commission in aid of the determinatton of the
value of the property within the State of such public service corporation.
Sec. 15. No public service corporation in existence at the time of the
admission of this State into the Union shall have the benefit of any future
legislation except on condition of· complete acceptance of all provisions of
this Constitution applicable to public service corporations.
Sec. 16. .If any public service corporation shall· violate any of 'the·
rules, regulations, orders, or decisions of the Corporation Commission, such'
corporation shall forfeit and pay to the State not less than one hundred
dollars nor more than five thousand dollars for each such violation, to be
r€covered before any court of competent jurisdiction.
. -
Sec. 17. Nothing herein shall be construed as denying to public service
corporations the right of appeal -to the courts of the State from the rules,
regulations, orders, or decrees· fixed by the Corporation Commission, but the
rules, regulations, orders, or decrees so fixed shall remain in force pending
the decision of the courts.
Sec. 18. Until otherwise provided by law, each Commissioner shall
receive a salary of three thousand dollars a year, together with his actual
necessary expenses when away from home in the discharge of the duties of
his office.
Sec. 19. The Corporation Commission shall have. the power and author­ity
to enforce its rules, regulations, and orders by the imposition of such
fines as it may deem just, within the limitations prescrtbed in Section 16
of this Article.
CHAPTER 90-1.. 912
(First Session)
. Defining Commission' s
Powers
SESSION LAWS OF ARIZONA
Chapter 90.
AN ACT
lU~l..v\TING TO PUBLIC SERVICE CORPORATIONS, PROVIDING· J;'OH
THE REGULATION OF THE SAME, FIXING PENALTIES FOR 'l'HE ·
, VIOLATION THEREOF, AND REPEALING CERTAIN ACTS; \V:TH
AN l!.MEHGENCY CLAUSE1.
Be it Enacted by the Legislature of the State of Arizona: -
Sec. 1. This act shall be . known as the "Public Service Corporation
Act," and shall apply. to the public service corporation sherein described and
to the Commission herein referred to.
Sec. 2. (a) The term "Commission," when used in this Act, means
the Coruorauon Commission of the State of Arizona.
(b) The term "Commissioner," when used in this Act, means
one of the members of the Commission. ·
(c) The term "Corporation," when used in this Act, includes
a corporation, a company, an association, and a joint stock association.
( d) • The term "Person," when used in this Act, includes an
individual, a firm, and a co-partnership. .
(e) The term "Transportation of Persons," when used in this
Act, includes every service in connection ·with or incidental to the safety,
comfort, or convenience of the person transported and the receipt, carriage,
and delivery of such person and his baggage.
(f) The term "Transportation of Property," when used in
this Act, includes every service in connection with or incidental to the
transportation of property, including in particular its receipts, delivery, ele­vation,
transfer, switching, carriage, ventilation, refrigeration, icing, dun·
nage, storage, and handling, and the transmission of credit by express corpo­rations.
.· (g) The term "Street Railroad," .when used in this Act, in­cludes
every railway, and each and every branch or extension thereof, by
Wll.atsoever power operated, being mainly upon, along, above, or below any
street, avenue, road, highway, bridge, or public place within any city, county
or town, together with all real estate, fixtures and personal property of
every kind used in connection therewith, owned, controlled, operated, or
l-1 ARIZONA CORPORATION COMMISSION.
managed, for public use in the transportation of persons or property; but
the term "street railroad," when used in this Act, shall not include a rail­way
constttuting Or used I ak ·a 'part: Of a' commercla!' Or interurban railway.
_ (h) The term "Street Railroad Corporation," when used in
this Act, includes .every corporation. or'p.erson, their lessees, trustees, re- .
ceivers, or trustees appointed by any court whatsoever,owning, controlling,
operating, or managing any street railroad for compensation within this
State.
(i) The term "Railroad," when used in this Act, includes
every commercial, interurban, and other· railway, other than a street rail­road,
and each and every branch or extension thereof, by whatsoever power
operated,' together with an· tracks,' brldges.: trestlesj" rights of way, subways,
tunnels, stations, depots, union depots, .yards, grounds, terminals.. terminal
facilities, structures and equipment, and all other real estate, fixtures and
personal property, 01 every kind· used in· connection therewith, .:owned;·'c on­trolled,
operated, or managed for public use in the transportation· of. person
or property.
(j} The term "Railroad Corporation,": when used in 'thia Act,
includes every corporation or person, their lessees, trustees, receivers, or
trustees appointed by any.court whatsoever,'. owning, eontrolling; operating,
9r .managing any- railroad :,for .transportatton, within. -this. State. r .1 r · ·. J', .•,
(k) The term "Express -Oorporattorr;" t.. when'vused 1 in''.'this
Act, includes every corporation or person, their· lessees, trustees, receivers
or-truatees appointed> by any court whatsoeverjengaged in 'or transacting
the business of transporting 'any freight, merchandtse.: or other property,· for
compensation on the. line 1of any· common carrier or stage or auto stage line
within this state.
·~1<1•• - '(I) .The 'term: "Common: Carrier," when used in this Act,
includes every railroad -corperatlon: • street railroad. corporation]" express
corporation; dispatch, sleeping· car, "dining ear,' drawing. room ·car, freight,
freight line, refrigerator,· oil, stock, fruit; car loaning, ear rehting;rcar'load­Ing,
and every other -car corporation,' or •person} electrical corporation}.
transmission corporation; telegraph> corporation f ·telephone i eorporation ;
water corporation, ·or' pipe line. 'Corporation; ' for the transportation 'of' per­sons,
or of electricity, messages, water, oil=or 'other 'property," fot profit,
their lessees, trustees, receivers or trustees appointed by any court what­soever,
operating for compensation within this State. .
(m) The :te'rni'.''Pipe L:ine,'' when used in' this. A~t,· tnclude~
all real' estate,' fixtures. 'and i>'ersonal property, owned, 'co'nfrolled, "'opera fed
or managed,' in connectton 'wtth ' or. to' facilitate· the 'ttansmissfdn:,,' storage; ...
distribution, or delivery of crude oil, or other fluid substance, except water,
through 'pipe Iines: in' furnishing' hot or cold 'air· or steam' for heating or
cooling: purposes. \ l • ' ' . ~ '. '! •.•• ' ' (r) The term "Electrical' Corporation," when used in this Act, .. includes every corp~ratibn or" person, their lessees," trustees, : receivers
or trustees ·ap.pointed by any- court 'whatsoever, owning, controlling, operating,
or managing, .any electric plant for compensation within this State, except
where electricity is generated on' 1 or dlstrlbuted by· the producer· through
privat~ property a16ne solely ' for his own use or the use of his tenants
and riot for sale to others. · ·- · ; : i -·; ', ,,.
. (s) The . term "Telephone Line,'' when used in this Act,
includes. an conduits, ducts, poles, -~ires 'cables; instruments and appliances,
'and all other r'eai 'estate; fixtures, and. ~erson.'al property, owned, controlled,
operated, or managed in. 'connection: with or to facilitate communication by
telephone, whether such communication is had 'with or without the use of
transmission wires. i_. n; . . . o;t •
-~ .·_,. -,
1(t) _ The term .. ~ "Telephone Corporation,": when: used b{ this
Act,· Includes evety corporatton or· person, their lessees; trustees, receivers
'or trustees appointed by any' court 'whatsoever, owning, controlling, operat­ing,
or managing any telephone line for compensation within this State. :
, . _· _ •-. __ . _ (u) The term "Telegraph Line," when used in this_ Act,
"include~a· ll conduits,' ducts, poles, wires, cables, instruments and appliances,
and 'an other 'reafestate, fixtures and personal property, owned, controlled,
operated,'. or managed in connection with or to" facilitate communication by
telegraph, whether such communication is had with or without the use of.
transmission wires.
. . . . - _- (v') _ The t'erm "Tei~graph Corporation," 'when used in this
Act,' .1nei{ide's - every· corporation or person,' their' lessees," trustees; receivers
or 'trustees,'''app.ointed by :any 'court whatsoever, owning, controlling,' oper­at,
ing, o:r: managing any telegraph li~e. for compensation wi.thin; ~his. State.
16 ARIZONA CORPORATION COMMISSION
(w) The term "Water System," when used in this Act, in­cludes
all reservoirs, tunnels, shafts, dams, dykes, headgates, pipes, flumes,
canals, structures and appliances, and all other real estate, fixtures, and
personal property, owned, controlled, operated or managed in connection
with ..or to facilitate the diversion, development, storage, supply, distributions,
sale, furnishipg, carriage, apportionment, or measurement, or water for
power, fire protection, Irrigattcn, reclamation or manufacturing, or for mu­nicipal,
domestic or other beneficial use.
· (x) The term "Water Corporation," when used in this Aet,
includes every corporation or person, their lessees, trustees, receivers or
trustees appointed by any court whatsoever, owning, controlling, operating,
or managing any water system for compensation within this State.
(y) The term "Warehouseman," when used in this Act,
includes' every corporation or person.: their lessees, trustees, receivers or
trustees appointed by any court whatsoever, owning, controlling; operating,
or managing any building or structure in which property is regularly. stored
for. compensation within this State, in connection with or to facilitate the
transportation of property by a common carrier, or the loading or unloading
of the same.
f(z)) The term "Public Service Corporation," when used in this
Act, includes every common carrier, pipe line corporation, gas corporation,
electrical corporation, telephone corporation, telegraph corporation, water
corporation and warehouseman, as these terms are defined in this section,
and each thereof is hereby declared to be a public service corporation and
to be subject to the jurisdiction, control, and regulation of the Commission
and to the provisions of this Act.
Sec. 3. (a) The Corporation Commission shall consist of three mem­bers,
who shall be elected and bold office for such time as prescribed in
· Section 1, Article XV of the Constitution of the State of Arizona. The
Commissioners shall elect one of their number chairman of the Coin.mission.
(b) Whenever a vacancy in the ·office of Commissioner shall
occur, the Governor shall· forthwith appoint a qualified person to fill the
same. Such appointed Commissioner shall fill such vacancy until a Com­missioner
shall be elected at a general election as provided by law, and
shall qualify.
Sec. 4. The . Attorney-General of the State shall be the attorney of
the Commission. It shall be the duty of such Attorney-General to represent
and appear for the people of the State of Arizona and the Commission in
all actions and proceedings involving any question under this Act or- under
any order or act of the Commission, and, if. properly directed to do so by
the Commission to intervene, if possible, in any action or proceeding in
which any such question is involved; to commence, prosecute and expedite
the final determination of all actions and proceedings directed or authorized
by. the Commission; to advise the Commission and each Commissioner,
when so requested, in regard to all matters in connection with the powers
ARIZONA CORPORATION COMMISSION 17
and duties of the .Commission and the members thereof; and generally to
perform all duties and services appertaining. to the Commission, which
the Commission may require of him.
Sec. 5. The Commission shall appoint a secretary, who shall hold
office during its pleasure. It shall be the duty of the secretary to keep a
full and true record of all proceedings of the Commission, to issue all neces­sary
process, writs, warrants.. and. notices, and 'to perform such other
other duties as the Commission may require or prescribe. He shall also
have all the powers conferred by law upon peace officers to carry weapons,
make. arrests and serve warrants and other process in any county; city or
town of this State.
Sec. 6. The Commission shall have power to employ, during its pleas­ure,
such officers', experts, engineers, statisticians, accountants, inspectors,
clerks, and 'employees as it may deem necessary to carry out the provisions
of this Act, ·or to perform the duties and exercise the powers conferred by
law upon the Commission.
Sec. 7. Each Commissioner and each person appointed to a. civil
executive office by the Commission· shall, before entering upon the duties
of his office, take and subscribe the constitutional oath of office. Each
Commissioner shall be a qualified elector of this State, and no person in
the employ of or holding any official relation to any corporation or person,
which said corporation or person is subject in whole or in part to regulation ~
by the Commission, and no. person owning stocks or bonds of any such
corporation or who is in any manner pecuniarily interested therein shall be
·appointed to or hold the office. of Commissioner or be appointed or em-ployed
by the Commission; Provided, that if any such person shall become
the owner of such stocks or bonds, or become pecuniarily interested· in such
corporation otherwise than voluntarily, he shall within a reasonable time
divest himself of such ownership or interest; failing to do so, his office or
employment shall become vacant.
Sec. 8. (a) The o-ffice of the Commission shall be in the city of
Phoenix, county of Maricopa. The office shall always be open, legal holidays
and non-judicial days excepted. The Commission shall hold its sessions .at
least once in each calendar month in said city of Phoenix, and may also
meet at such other time and in such other places as may' be axpedlent and
necessary for the proper performance of its . duties. For· the purpose of
holding sessions in places other than the city of Phoenix, the· Commission
shall have the power to occupy and. use any court room or to rent quarters
or offices, and the expense thereof and in connection. therewith shall be
paid in the same manner as other expenses authorlsed by this Act. The
sessions of the Commission shall be public.
(b) The Commission shall have a seal, bearing the following
inscription: "Arizona Corporation Commission." The seal shall be fixed
18 , l ARIZONA CORPOnATION COMMISSION "'-·'•,.· : •• • •• i. ' ;
to all writs and authentications of copies of records and to such other in­struments
as' the . Commission. may direct. All courts . shall tak~ judicial
notice of saia' sear.' ' ' ' ' . ·. ' .. ' ' \' ;
(c) The Commission is authoriz'e0:ration..~ ;' to railway:,ni11n service 'eriiploye~s;' post­office
• inspector's, cus to'm . Inspectors," and iinrn'igratioh . inspectors'; , fo' news­bo'ys
'on trains, baggage'·agents,l . witnesses ··attending.any.'te'g~1-investlga­tion
i~ which the common carrie~ is; Interested, persons' injured ::in1 \vr~ck-s
~nd'' physician~ . and . nurses' ahen'ding such" person~;" when :auth'ori~~d by
'the corporation· co~missi·o~; bro~id~d; ·oia't the· ierrri''·•1employee·s,,·'as U.'sed.
in this. ~ectio~. shall include Jurloughe,d, . ;pe~sione~, , and superannuated em­ployees,
persons 'who have become disabled ·~r infirm"in. th.'e' service of any -
such' coinm~~ c~rri~~. and' th~· 're'~~1ns 'of"a pe'r~n 'kiil1ed' in the ~mploym'ent
of 'a 'c'om'rrion 'carrier a~d ~x~e;mpfoy'ees"i~aveling' f~r 'the'p~~pose' of .. 'en't'er­irlg/
th~ ~~rvice ~r"a~y such :c~mmon ·~arri~r;··a~d tlie''t'er~· "families" as
used in this section shall include the families of those persons named in
this. proviso, 'also the' families of. perscnis' 'killed, 'and the" wfdo.ws. during
'widowhood;· .and minor children,.during minority~-of'p.ersons .wilo'd'.ied while
in. the. s'ervice of' any such common. carrier .... :Notlling~ln t:his 'Act' shall be
construed to prohibif the hiterchange of pas'ses' fo'r the 'officers, agentS; and
employees on common carriers, and their families; nor to prohibit any com­.
n~on ~carrier from 'carrying,"passengers' free \vith the'' obJect of providing
relief. in case's of general epidemfo, pestilence,' 'or ~0th.er' calamitous' visitation;
and,. provided. furth'er, that'ihese' ''prov!Sions .• 'sliall iiof be- construed to pro­'
J:libit 'the' privileges 'of pa.'sses 'o'd:ranks: o'r' the 'eichange 'thereof'with each
other, for the officers, agents, employees, and. thefr ·taniflies of an common
'cari'iers,.'subject to' the provisions Ot ib.is'··.Aa.::i .... ,. 11"''
::.. •
': . .A:nd, ptovided further'; 'that with 'the1'cons'ent 'of' th~. Ccfrporatior{Corri­mission/'
every· coID.mo.ii ··c·arrier· may· trab.sport','free;-· ot·'af'reducM rates,
bontractor~· ~nd t~efr employees, tmate~iaC or'supplfo·s. for use . O'r.'engaged
'ib. carrying but their' contracts vdth said common carriers, for "constrl.lction,
~peration;· or 1maintenanc'e 'work, ~r. wo'rk incidental thereto''' on the Iin'e; ()'f
:the "issuing carrfer;· to th~ extent 'only' ;that 'such free. or red'uded fate: 'trans-.
portaHoii is provided' for· in the 'specificatioiis upon which the';contract is
based and in the: contract 'itself. ,.
Common ·carriers may also enter into contracts· with each· other for an
exchange of service. · ·. · · · ! '' •
1
'''
i i J l : ' ' > .~ ! ; - ' ' ' { " - . ' . ~ - . . ' ; ' '' " ~ ' . . ' > ' f' ·~ . . ' ( 4) . Every common carrier shall, on. the .first. Monday in July of each
':Yea'.r, a~d at such other 'ume as . may be reciU:ir.ed I b'y 'the Commission, file
with the Commission a verified list of all tickets, passes, mileage books,
franks, or 'reduced rate transportation issued for 'other than actual" bona fide
money .consideration. at full established 'rates during the preceding. year,
together with . the names of the :'recipients thereof, the. amount received
therefor, and the ~easori for. issuing the same. .Th.is shall not apply. to the
sale of tickets at reduced rates open "to the public, .
. (b) . Except as, in this section otherwise provided, no public service
corporation shall. charge, demand, collect; •. or receive a greater or. less or
different compensation. for any: product or. commodity furnished, or to be
furnished, or for any service .rendered, or to be rendered,. than the rates,
tolls, rentals, and charges applicable· to such product or commodity or ser­vice
as specified .in its schedules on file and. in effect at the time, nor shall
any' such public service corporation refund or remit, directly or indirectly,
in any manner or by any device, any portion. of· the rates, tolls, rentals and
charges. so specified, nor extend to any corporation .or persons any. form, of .
contract or agreement or any rule or regulation, or. any facility or privi­lege
except such as are regularly and uniformly extended to all corporations
and persons; provided,· that the Commission may by, rule .or order. estab­lish
such exceptions from the operation of thfs prohtbltton as it. may con­sider
just and reasonable as to each public service corporation: , · ..
Sec. 18. 'Every common carrier and every telegraph and. telephone cor­poration
shall print' and 'file or cause to· be filed with the Commission sched­ules
· showing all the rates, fares, tolls, rentals, charges and classifications
for the transportation -of persons or property or the transmission of. mes­sages
or conversations between ali points. within this State and all points
without the: State upon its· route, and between all· points. within this ·State
and all points without the· State upon every route leased,· operated, or con­trolled
by it, and between all points on its route or any route. leased, oper­ated
or controlled by it within this State and alFpoi~ts without the State.
upon the route of any other common carrier or· telegraph or telephone·
corporation, whenever a through route and joint rate shall have been estab­Iished
. between any two such points.
Sec. 19. No public service corporation shall, as to. rates, charges •. ser­vice,
·facilities, or in any other .respect, make or grant· any preference or
advantage to any· corporation or person or subject any corporation or personi
to any prejudice or disadvantage; No public service corporation shall estab­lish
or maintain any unreasonable .difference as to rates, charges, service,
facilities, or in any other respect, either as between localities or as between:
classes of service .. The Commisslon shall have the power to determine any
question of fact arising. under this section. ' ..
Sec. 20. Nothing in this Act shall b~ 'taken to prohibit any public ser-'
vice corporation from itself profiting, to - the ·extent· permitted. by. the Com­·
mission, Iromrany economies, efficiencfes, 'or improvements which it may
make, and from distributing by way of dividends', 'or otherwise disposing
o~ the profits to which it may be so entitled, and the Commisaion is au~hor-
ARIZONA CORPORATION COMMISSION
ized to make or permit such arrangement or arrangements with any-public
service corporation as it may deem wise for the purpose of encouraging
economies, efficiencies or improvements and securing to the public service
corporation making the same such portion, if any.. of the profits thereof. as
the Commisslon may determine.
Sec. 21. Nothing in this Act shall be taken to prohibit a corporation
or person engaged . in the production, generation, transmission, or furnish­ing
of heat, cold air, light,· water, or power, or telegraph, or telephone ser­vice,
from establishing a sliding scale of charges; provided, that a schedule
showing such scale of charges shall first have been filed with the Commis­sion
and such schedule and each rate set out therein approved by it. Nothing
in this Act shall be taken to prohibit any such corporation or person from
entering into an arrangement for a fixed period for the automatic adjust­ment
· of charges for heat, cold air; light, water, or power, or telegraph or
telephone service, in relation to the dividends to be paid to stockholders of
such corporation, or the. profit to be realized by such person; provided, that
a schedule showing. the scale of charges under such arrangement shall first
have been filed with· the Commission and such schedule and· each rate set
out therein approved· by it. Nothing in this section shall prevent the Com­mission
from revoking its approval at any time and fixing other rates and
charges for the product or commodity or service, as authorized by this Act.
Sec. 22. (a) Every common carrier shall afford all reasonable, proper,
and equal facilities for the prompt and efficient interchange and transfer of
passengers, tonnage, and cars, loaded or empty, between the lines owned,
operated, controlled or leased by it and the lines of every other common
carrier, and shall make such interchange and transfer promptly. without
discrimination between ·shippers, passengers or carriers either as to com­pensation
charged, service rendered or facilities afforded. Every railroad
corporation shall receive· from every other railroad corporation, at any point
of connection, freight cars of proper standard and in proper condition. and
. shall haul the same either to destination, if the destination be upon a line
owned, operated, or controlled by such railroad corporation, or to a point
of transfer according to route billed, if the destination be upon the line of
some other railroad corporation. Nothing in this section contained shall
be construed as ia any . wise limiting or modifying the duty of a common
carrier to establish joint· rates, fares and charges· for the transportation of
passengers and property over the lines owned, operated, controlled or leased
by it and the lines of other common carriers, nor as in any manner limiting
or modifying the power of the Commission to require the establishment of
such joint rates, fares, and. charges.
(b) Every telephone corporation· and .telegraph corporation operating
in this State shall receive, transmit and deliver," without delay or discrim- .
ination, the conversations and messages of every other telephone or tele­graph
corporation with whose line a physical connection may have been
made.
ARIZONA CORPORATION COMMISSION 2i
Sec. 23. (a) No common carrier, or any officer or agent thereof, or
any person acting for or employed by it, shall, by means of known false
billing, classification, weight,· weighing or report ot weight, or by any other
device or means assist, suffer, or permit any corporation -or person to obtain
transportation for any person or property between points within this State,
at less than the rates and fares then established and in force as shown by
the schedules filed and in effect at the time. No person, corporation, or any
officer, agent. or employee of a corporation shall, by means ot false billing,
false or incorrect classification, false weight or weighing, false representa­tion
as to contents or substance of a package, or false report or statement
of weight, or by any other device or means, whether· with or without the
consent or connivance of a common carrier or any of its officers, agents, or
employees, seek to obtain or obtain such ·transportation for such property
at less than the rates then established and in force therefor.
(b) No person or corporation, or any officer, agent, or employee ·of a
corporation, shall knowingly, directly, Gr Indirectly, by any false statement
or representation as to cost or value; or the nature or extent of an igjury,
or ·by the Use of any false btlling, bill of lading, receipt, voucher, roll.. ac­count,
claim, certificate, affldavit or deposition, or upon any false, fictitious
or fraudulent statement or entry, obtain or attempt. to obtain any allow·
ance, rebate or payment for damage, in connection with or growing out of
the transportation of persons or property, or ·an agreement to transport such
Persons or property, whether with or without the consent or .connivance of
a common carrier or any of its officers, agents, or employees; nor. shall any
common carrier, or any officer, agent, or employee thereof, knowingly pay
or offer to pay any such allowance, rebate or claim for damage.
Sec. 24. (a) No common carrier subject to the provisions of this Act
shalj charge or receive any greater compensation in the 'aggregate for the
transportation of persons or of like kind of property for a shorter than for
a longer distance over the same line or route in the same direction, within
this State, the shorter being included within the longer distance, or charge
any greater compensation as a through rate than the aggregate of the inter­mediate
rates; but this shall not be oonstrued as authorizing any such com­mon
carrier to charge or receive as great a compensation for a shorter as
for a longer distance or. haul.
(b) No telephone or telegraph corporation subject to the provisions of
this Act shall charge or receive any greater compensation in the aggre­gate
for the transmission of any long distance message or conversation for
a shorter than for a longer distance over the same line <>r route in the same
direction, within this State, the shorter befog included within the longer
-distance, or charge -any greater compensation for a through service than
the aggregate of the intermediate rates or tolls subject to· the provisions of
this Act; but this shall not be construed as authorizing any such telephone
or telegraph corporation to charge and receive 11.s great a compensation for
a shorter as for a longer distance.
ARIZONA CORPORATION COMMISSION
'(c) .Upon application to the Commission, a telephone' or telegraph
corporation may, .in special · cases, after Investtgation, be authorized· by the
Commisslon to charge . less for a longer than for a shorter distance service
for the transmisslon 'of mes sages or conversations, .and the Commission may from time to time prescribe the extent to 'which, such telephone or tele­graph
corporation may be relieved from. the operation and requirements
6! .this section. ,
Sec. ~5._ (a) E\'ery rail~oad corporation, 'up~n the application of. any
corporation or 'person,'' being a shipper or receiver or contemplated 'shipper
or receiver of freight, for a connection between the· railroad of such rail­road
corporation and any existing or contemplated private track, tracks, or
railroad of such .corporatlon or. person, .shall make "such connection- and, pro­vide
such switches' and tracks as may, be necessary for that purpose and
deliver and receive cars . thereover; provided, that such connection is
reasonably practicable and can be installed and used without materially
increasing 'the hazard of the operation: of the railroad with which such con­nection
is sought.'and that the business which may reasonably be expected
to be received by such railroad corporation over such connection is suffi­cient
to justify the expense of such connection to such railroad corporation.
(b). Under the conditions specified in the proviso in .subsection (a)
hereof, every railroad corporation, . upon the application of any corporation
or person being a shipper or receiver or contemplated shipper or receiver
of freight, shall construct upon its right of way a spur or spurs for the pur­pose
of receiving and delivering freight thereby, and shall receive a~d de­liver
freight thereby.
$ec. 26. ··No foreign ·corporation, other than those -which by a compli­ance
with the laws of this State .are entitled to transact a public service
corporation business within· this State,· shall henceforth transact within this
s·tate any public service corporation· business, nor shall any foreign cor­poration
which is at present lawfully transacting business within this State
henceforth transact within this State· any public -servlce corporation buai-;
ness of a character different from that which it' Is'at present' authorized by
its charter or articles. of. incorporation to transact; nor shall any, license,
permit or franchise to own, control, operate, or manage any' public . service
'corporation business or any part or incident thereof, be henceforth granted
or. transferred, directly or indirectly, to any foreign co.rporaBon which is not
at: present lawfully transacting within this State a' publlc service 'corpora­tion
business of Iike character; provided, that foreign corporations engag­.
ing ill: comme:c~ with forelgu nations ?r commerc~ _ am~i;ig t~e ~eve.ra~ sta~es
of this Union may transact within this State such comrnerce and intra-state
commerce of ·a. like character. . . . ·''. ' . ' . . ' . ,
• f, ! ,"- ) : r, -:-,{\
:, · sec: 21. 'N-o -sheet or' interurb.an ranro~d 'corpoh:i,-tion···shacnh, arge; de.­marid,
collect 'or, receive more than fl ve cents for , one continuous ride in. the
same general direction within the corporate limits of any city or .town; ~xcept
ARIZONA CORPORA T~(?N. QOMMISSION
~ /..., ._) ., ; j·.; ... /: 27 n
· upon a showing before the Commission that such greater charge is justified;
provided, that until .the deciston df .the Cominissi6n ·upon such sh6wing, a
street or interurban railroad corporation may bon'timie'.tb 'demand, 'collect,
and receive the fare in effect on February fourteenth, nineteen hundred
arid twelve, or' at the'.uille the ciommis'siori ·acquires 'as; tO' such corporation
the· 'pdweHo fix fare~i wfthin' such c·lty or town. 'Eve'rY'stre.et:or· interurban·
· railroad c~rporatidn ·shail upon'such ·terms ks the Ccimmission shall. find to
be 'just and reasonable furnish to its' passengers ' transfers 'eritltling 'them·' to
one. continuous 'trip. iii the' same generaf dlrectloii over 'arid 'upon the' portions
of its lines within the same City 'arid courity; or city;'dr town, not Ireached
by' the' orlginatin!fear. "·.. ···.>c·
,·Sec:, 28. Every public ser~ice. corporation shall, furnish to.,the Com­mission
in ·s~ch)orm and s~chdetall as the Con1mission' shall prescribe all
tabulat·i~ns, computations ~nd 'an : ot:6.e'~ i'~formation' required 'by° it to carry
into effect any of the provisions of this Act, and .shall make specific answers
to all ·questions submitted by the· Commission.
(b) Every public service corporation receiving from the Commission
any blanks with directions to fill the same shall cause the same to be prop­erly
filled out so as. to answer fully and correctly· each questton propounded
therein; in case it is. unable to answer any question, it shall give a good
and sufficient reason for such failure.
( c) Whenever required by the Commission, "every public service cor­poration
shall deliver to the Commission· copies of any or all maps, profiles,.
contracts, agreements,' franchises, reports, books, accounts, papers and
records in its possession, or in any way relating to its property or affecting
its business, and also a complete inventory of all its property in such form
as the Commission may direct.
•• i. .. , •. ,'
·· (d) No information .furntshed to .the Commission. by .a. public service
corporation, except such matters, as are .apecifleally required . .to be open to
Public inspection by the provisions of thls -Act, .shall ibe "open to public
inspection or made public except on order of the Commission, or by
the Cpmmission, or a Commissioner, in the course; of a hearing or proceed­ing
.. Any officer or employee of ·the Commission who, in, violation of the
Provisions of this sub-section, divulges· any' such information shall be guilty
of a misdemeanor;·.· ·
' . ' '":~:. r, :·. 'i ··~j '·-~!·'4 '.". r •::' ~ ~('i -.r-·-·. t .• 1~·-·'!" ') Sec. · 29: Every public service corporation shall annually' furnish to
the~Commission· af such time and in such 'form as the ·com~issio~ may r~·­quire
a report in which the ·pubi1c· service" corporatioJl shat1' specificaM
~nswer . all questions. propound~d . by _the Commission 11pon or conc~rning
Which t.he. Co.mniission may desli·e'iriforma.ifon~' The Commission shall hav~
aut_hority io requir'e any pu.blic s.ervice &orporation 'to file1 m'Onthly_'r eports
of earnings a.nd expenses:. and to file. periodical or special, or b~th perio~ical
and. special' reports concerning any··~atter ·about .. whfoh the Commissfon is
authorize'd by 'this· or 'any' other ·Act"to. inquire .or·:·t~ ·keep 1Itself-'informed:·
• . . - ... . ' - ~ ~'. . ' . ,. _ , ;_ ~:, f:. : ) " •·._ _ - -- -. -~ ' . ', .- '.
28 ARIZONA _CORPORATION COMMISSION
or which it is required to enforce. All reports shall be under oath when
required by the Commissioner.
Sec. 30. .Every public service corporation shall obey and comply with
each and every requirement of every order.. decision, direction, rule, or reg­ulation
made or prescribed by .the Commission in the matters herein speci- .
fled; or any other matter. in any way relating to or affecting its .business
as a public service corporation, and shall do every thing (everything) nec­essary
or proper in order to secure compliance with and observance of every
such order, decision, direction, rule or regulation by all of its officers, agents,
and employees.
Sec. 31. The Commission is hereby vested with power and jurisdic­tion
to supervise and regulate every public service corporation in the State
and to do all things, whether herein specifically designated or in addition
thereto, which are necessary and convenient in the exercise of such power
and jurisdiction.
Sec. 32. (a) Whenever the Commission, after a hearing had 'upon its
own motion or upon compJaint, shall find. that the rates, fares, tolls, rentals,
charges, or classifications, or any of them, demanded, observed, charged,
or collected by any public service corporation for any service or product
or commodity, or in connection therewith, including the rates or fares for
excursion, or commutation tickets, or that the rules, regulations, practices,
or contracts, or any of them, affecting such rates, ·fares, tolls, rentals,
charges, or classiflcations.: or any· of them are unjust, unreasonable, dis­criminatory,
or preferential, or in anywise in violation of any provision of
law, or that such rates, fares, tolls, rentals, charges, or classifications are
insufficient, ·the Commission shall determine the just, reasonable, or suffi­cient
rates, fares, tolls, rentals, charges, classifications, rules, regulations,
practices, or contracts to be. thereafter observed and in force, and shall
fix the same by order as hereinafter provided.
(b) The Commission shall have power, upon a hearing had upon its
own motion or upon complaint, to investigate a single rate, fare, toll, rental,
charge, classification, rule, regulation, contract, or practice, or any . num­ber
thereof, or the entire schedule or schedules of rates, tares; tolls, rentals,
charges, classifications, rules, regulations, contracts and practices, or any
thereof, of any public service corporation, and to establish new rates, fares,
tolls, .rentals, charges, classifications, rules, regulations, contracts, or prac­tices,
or schedule, or schedules, in lieu thereof
Sec. 33 Whenever the Commission, after a hearing had upon its own
motion or upon complaint, shall find that the rates, fares or charges in force ·
over two or more common carriers, between any two points in this State,
are unjust, unreasonable or excessive, or that no satisfactory through route
or joint rate, fare or charge exists between such points, and that the public
convenience and necessity demand the establlshment of a through route and
ARIZONA CORPORATION COMMISSION 29
joint rate, fare or charge between such· points, ·the. Commission may order
such common carriers to establish such through route and may establish
·and fix a joint rate, fare, or charge, which will be fair, just, reasonable and
sufficient, to be allowed, charged, enforced, demanded and collected in the
future, and the terms and conditions under which such through route shall
be operated. ·
The Commission may order that freight moving between such
points shall be carried by the different common carriers, parties to such
through route and joint rate, by the nearest and most practicable route and
without being transferred ·from the originating cars. ,
In case the common carriers do not agree between them upon "the
division of the joint rates, fares or charges, established by the Commis­sion
over such through routes, the Commission shall, after hearing, by sup­plementary
order, establish such division; provided, that where any rail­road
corporation which is made a party to a through route has itself over
its own line an equally satisfactory through route between the termini of.
the through route est~lished, such railroad corporation shall ·have the
right to require as its division of the joint rate, fare, or charge, its local
rate, fare or charge over the portion of its lines comprised in such through
route. and the Commission may, in its discretion, allow to such railroad
corporation more than its local -rate, fare or charge, whenever it will be
. equitable so to do. The Commission shall have the power to establish and
fix through routes and joint rates, fares, or charges over common carriers
and stage or auto stage lines and to fix the division of such joint rates,
fares or charges.
Sec. 34. The Commission shall have the power to investigate all exist­ing
or proposed interstate rates, fares, tolls, charges and classifications and
all rules and practices in relation thereto, for or in relation to the tran~­Portation
·of persons or property or the transmission of messages or con­versations,
where any act in relation thereto shall take place within this
State; and when the same are, in the opinion of the Commission, excessive
or discriminatory or in violation of the Act ()f Congress entitled, "An Act to
regulate commerce," approved February fourth, eighteen hundred and eighty­seven,
and the acts amendatory thereof and supplementary thereto, or ·or
any other Act of Congress, or· in conflict with the rulings, orders or regu­lations
of the Interstate Commerce Commission, the Commission may apply
by petition or otherwise to the Interstate Commerce Commission or· to any
court of competent jurisdiction for relief.
Sec. 35. Whenever the Cemmisslon, after a hearing had upon its own
motion or upon complaint, shall find that the. rules, regulations, practices,
equipment, appliances, facilities or service of any public service corpora­tion,
or the methods of manufacture, distribution, transmission, storage. or
supply employed by it, are unjust, unreasonable, unsafe, improper; inade­quate
or insufficient, the Commission shall determine the just, reasonable,
safe, proper, adequate or sufficient rules, regulations, practices, equipment,
, ~~---
appliances, fa~ilities, service. or methods . to be observed, furnished, con­structed,.
enforced 'or. empl~ye°d: and shall . ,fix. the same' by its - order;' rule or
regulation. 1The·. Commlsstori shrall prescribe rules'· and r~gulatio~s for the
perfor:rriitnc~: o1f arii 1servfoe. orthe furnishing of any commodity of the char­acter
furnished or supplied by any public service . corporatioll:, . and . upon
proper. demand and tender of rates, such public service corporatton" shali
furnish such commodity or render such service within the time''anc(hpon
tli~ conditions 'provlded 'in' siich rules: '· '" "· :·> _· · ·· '....... .., ' , ·
". ·······~~ ....... "'···· ~ •. ,,,_. ~ :.... . ,., ..• ,.. • +-~ ... ·(·~--.,,- .. "· ·~ 11~
1:7-t.. ,·~ '",;.'\ ;· ..... :"',,_.., "'"•t.;;,-· ~-~· ,,~...,. ·... • "J ....... ;_ ... ;'· ~,~'~ ·'>'.
Sec. 36. Whenever. the. Commission, .arter .a. hearing, had upon: its own
motion qi'. upon complaint, shall . find that additions, extensions, repairs or
improvements to, or changes In •.. the. existing .plant., .equlpment, apparatus,
· · facilities or other .phyalcal .. property pf,~nY. public service corporation or, of
any two or, more public .. service corporations .ought, reasonably to. be .. made,
or. that a new structure. ~or structures, should. be erected.. to .promote the se~
eurlty or convenience of its .emplozees or the public, or in any other way
to secure adequate .servtee or facilities, .the . Comn:tlsion shall make and
serve an order directing .. that .suoh. addltlons, extenslons.. repairs, . improve­ments
.or changes be made or such structure or structures. be erected in the
manner. and. within . the .tlme '. ,specified . in . said order; .. If, jhe .. Commisaion
orders .the erection of.~ .. new structure • .tt may also . fix . the, .stte thereof .. Jf
3iny additions, .... extensiqns, . ;repairs, . hnprovements, _,o:r:,changes,, or any, .. ne.w
structu,re. or structures . which the Comm~ssion has ordered :to. be, .erected,
requi:l,"e joint action by two ,pr .:wore, public. service, corporations, .the. Com~
mission .shall notify the said public service corporations that, sμch. additions,
extensions, repairs, improvements or changes or new structures have been
ordered and that the same shall be made at their joint cost, whereupon the
said public service corporations shall have such reasonable time as the
Commission .~ay-.g~~u1.t. within which; to a·gr~e .. uP~.~- t~.e .P~~t-io~ .. ~r ~ivi~io~
of cost•· of such addition.s, extensions, repairs, improvements ·or changes ,or
~~~. structJir~ .. ~r. structu~ef3~ )Yhich ·.each .. shall. :t>~~~. .. If at ,t)ie expir~ti~~
of sμch time such public service corporations . shall fail to. file with the Com-
1lllssion, a. staten:ient .that.~~~ ~g~~~me~t pa~. _b~en: ~~d~. fo1,: ·~ ·. dlvisio~ .. or
appo,rtionme~t gf, tlie cost .?r1 ~xpense .of su_ch additi_OD;S, e.xtensions~. :reI,>~irs,
improvem~nt~, or . c~anges,, or n;e:w. structure. or, . ~tructures, . the. Co1Jlmi,ssion
shall ha.ve .the, .autho_rity, af~e~ f,urther hearing, __ to_ make an. 9rder. fi~ing th~
proportion of such. cost or exvense to be born (borne). by. each public ser­vice.
corporat.ion "a'~d "th'e. ~anne~ in 'which the~ ~a~e. shall b~ . :Paici" o~ • . ., ,r , • . , • ' ' · «".• · • • : • - • • ·• • · • "- ~ • • ·- Ii · • '·· •'- - . 't, · • : .. ~ " .. , r . ' _, ; • "' - _. • ' '' - ·I t •
secured.
";,,Sec~ 37 ~".Whene~er. ~h,e .. Co!llmission,_ after ,a, .. h~aring,1had, UP()n its._.own
mo.tion ox: upon complaint,, a.hall find ,that Jl.llf,railroad corpor~tiop.,,,or s_tre~t . . . '.,. .. ' . ·..• . ' .L ;_ ' ' . , .... • .·. . . .•.. ····'} railroad corporation does .. not ,:run a. sufficient number. of trains or .. cars~ qr
p~ssess or': operate s.uffici~~t motiv~ power, reasonably to accommodate' the
traffic, passenger or freight, transported by or offered for transportation
to it, or does not run it~ . trains .or 'cars with sufficient frequency .or at a
reas~nable or proper time ')av~ng'. r~gard to'. safety,'_ ·~r·. do'~~ . n9t' sfop. th~
•, -, ··~ .~ .. ,;;_.,.\;i:.;."'."i, ; .•• ~~ •. C.~·•· -~·· ~. ,,~,,,..,: ... ·.;., ,.(·,-.,_.,
ARIZONA . CbRPORA TiON COMMISSIO~ 31
same at pro.per places,'o'.r' does''not'run'.1an:Y. hain or' t~ain'S, ca'.for 'cars upbn
a reasonable .time .schedule :ferati~g or ·managing _tracks· of tlie same gau.ie
to make physicaf 'connections at'any' and 'alf cros'sillgs; an_d at" ali 'points
Where a ·railroad "or 'street' railroad ··shall begfo' or 'terminate or 'run 'near to
any '0th.er raili-o~d or· ~treet · ~ailr()·a.a. 'A.fter the· 'iiecessari franchise or pe·r:
mit has' been. secured rrom' 'the" city, 'courifr 'or town," the ccim~issioii may
likewise' 'order such' physic'a1 . c'oI1iiecdon, withiii' such. city, . county or. town,
~~~~·ee~ t"':o or. more ·railroads' which ente~' the limits of the' same. , The
Commission shall by order direct whether the expense of the connections
referred to in this section shall be born (borne) jointly or otherwise:
., Sec. 39. (a)" Whenever 'tJie Commfsstori, after a.· lieari~g had upon its
o~~ motion or upon complain( shall 'find that application has been m~de by a:ni . corporation or pe~son to 'a rai'load corpor'atfon for a' connection or spur
as provided ii{ Secfi'on twenty-fiv'e 'o{ this Ac( and 'that the' railroa(i'corpora­tion
has refosed tO p'rovide s~ch co'D.neciiori· ·~r. spur an.a· 'thafthe applicant
is .entitled, to . have' the sarne 'provided.. for . him· under said. Sectfon. twenty-five,
the' 6ornini'ssi0n ·shall 'make an order requfring the 1proviab1g of :sucli connec­tion
~or spur and 'the nia'iritenance and' use of 'the' same uiion reasonabie terms
~~!c~ ·t~e Co'm'missiOn shall have the powett~ 'prescribe~ Whenever. s~ch
con~ectiori. or sp'uf 'has been '·so provided,. any. corporatfoii" o,r . person 'shall
b_~ entitled fo connect with the priv~t'e' track, tracks or railroad thereby con­nected
with the railroad of th~ railroad corporation and to use the same or
to use the spur so provided upon payment to the party or parties incurring
the. Primary e:X::Pense of such :private· track, tracks ·or· :ranroaa,1 or· the· connec­ttori
'therewiUi' o:t Of such spur~ of a reasonab'le proportion'C>f the cost thereof
t'o ·l:Je'· determin~d . by. the ·commission a'ftet. notice·· to'. tile: interested'. parties
and a hearing thereon; provided, that such connection: and use ca:ri be'made
without unreasonable interference with the rights of the party or parties
i?Ictirrihg'. such'. primary expense;: • •; .•''. :. •:·~:· .•. ' ', .·> '!
· .~ .. Oh ' The'' Commissi:on··s hall likewise hav{ the· power fo r'equfre one"rail-
32 ARIZONA CORPORATION COMMISSION
road corporation to switch to private spurs and industrial tracks upon its
own railroad the cars of a connecting. railroad corporation and to prescribe
· the terms and· compensation ~or such service.
Sec. 40. Whenever the Commission, after a hearing had upon its own
·motion or upon complaint, shall find that a physical connection can reason­ably
be made between the lines. of two or more telephone corporations or
two or more telegraph corporations whose lines can be made to form a con­tinuous
line of communication by the construction and maintenance of suit·
able connections for the transfer of messages or conversations, and that
public convenience and necessity will be subserved thereby, or shall find
that two or more telegraph or telephone corporations have failed to estab- ·
lish joint rates, tolls or charges for service by or over their said lines, and
that joint rates, tolls or charges ought to be established, the Commission
may, by its order, require that such connection . be made, except where the
' purpose of such connection is primarily to secure the transmission of local
messages or conversations between points within the same city, or town,
and· that conversations be transmitted and messages transferred over such
connections under such rules and regulations as the Commission may estab­lish,
and prescribe through lines and joint rates, tolls and charges to. be
made, and to be used, observed and in force in the future. If such telephone
or telegraph corporations do not agree upon the division between them of
the cost of such physical connection or connections or the divisions of the
joint rates, tolls, or charges established by the Commission over such through
lines, the Commission shall have authority, after further hearing, to establish
such division by supplemental order.
Sec. 41. Whenever the Commission, after a hearing had upon its own
motion cir upon complaint of a public service corporation affected, shall
find that public convenience and necessity require the use by one public
service corporation of the conduits, sub-ways, tracks, wires, poles, pipes or
other equipment, or any part thereof, on, over, or under any street or high­way,
and belonging to another public service -corporatlon, and that such use
will not result in irreparable injury to owner or other users of such conduits,
sub-ways, tracks, wires, poles, pipes or other equipment or in any substantial
detriment to the service, and that such public service corporations have
. ·failed ·to agree upon such use or the terms and conditions or compensations
for the same, the Commission may by order direct that such use be permitted
and prescribe a reasonable compensation and reasonable terms and condi­tions
for the joint use. If such use be directed, the public service corpo­ration
to whom the use is permitted shall be liable to the owner or other
users of such conduits, sub-ways, tracks, wires, poles, pipes or other equip­ment
for such damage as may result therefrom to the property of such owner
or other 'users thereof.
Sec. 42. The Commission shall have power, after a hearing had upon
its . own motion or upon complaint, by ,•general or special orders, rules or
ARIZONA CORPORATION COMMISSION 33
regulations, or otherwise, to require every public service corporation to
maintain and operate its line, plant, system, equipment, apparatus, tracks
· and premises in such manner as to promote and safeguard the health and
safety of its employees, passengers, customers, and the public, and to this
end to prescribe, among other things, the installation, use, maintenance and
operation of appropriate safety or other devices or appliances, including inter­locking
and other protecting devices at grade crossings or junctions and
block or other systems of signalling, to establish uniform or other standards
of equipment, and to require the performance, of any other act which the
health or safety of its employees, passengers, customers or the public may
demand.
Sec. 43. (a) No public road, highway or street shall hereafter be
constructed across the track of any railroad corporation at grade, nor shall
the track of any railorad (railroad) corporation be constructed across a
public road, highway, or street at grade, nor shall the track of any railroad
corporation be constructed across the track of any other railroad or street
railroad corporation at grade, nor shall the track of a street railroad cor­poration
be constructed across the track of a railroad corporation at grade,
Without having first secured the permission of the Commission; provided,
that this sub-section shall not apply to the replacement of lawfully existing
tracks. The Commission shall have the right to refuse its permission or to
grant it upon such terms and conditions as it may prescribe.
(b) The Commission shall have the exclusive power to determine and
Prescribe the manner, including the particular point , of crossing, and
the terms of installation, operation, maintenance, use and protection of .eaeh
crossing of one railroad by another railroad or street railroad, and of a
street railroad by a railroad and of each crossing of a public road or higway
(highway) by a railroad or street railroad and of a street by a railroad or
vice versa, and to alter or abolish any such crossings, and to require where,
in its judgment, it would be practicable, a separation of grades at any such
crossing theretofore or hereafter established and to prescribe the terms upon
Which such separation shall be made and the proportions in which the ex­pense
of the alteration or abolition of such crossings or the separation of
such grades shall be divided . between the railroad or street railroad cor­porations
affected or between such corporations and the State, county,
municipality or other public authority in interest.
(c) Whenever the Commission shall, after a hearing had upon its
own motion or upon complaint, find that public convenience and necessity
demands the establishment, creation or construction of a crossing of a
street or highway over, under or upon the tracks or lines of any public
service corporation, the Commission may by order, decision, rule or decree
require the establishment, construction or creation of such crossing, and
said crossing shall thereupon become a public highway and crossing.
Sec. 44. The Commission shall investigate the cause of all accidents
• occurring within this State upon the property of any public service corpora-
34 ARIZONA CORPORATION COMMISSION
tion or directly or indirectly arising from or connected with its maintenance
or operation, resulting in loss of life or injury to persons or property and re­quiring,
in the judgment of the Commission, investigation by it, and shall .
have the power to make such order or recommendation with respect thereto
as in its judgment may seem just and reasonable; provided, that neither the
order or recommendation of the Commission nor any accident report filed
with the Commission shall be admitted as evidence in any action for damage
based on or arising out of the loss of life, or injury to person or property,
in this section referred to. Every public service corporation is hereby .re­quired
to file with the Commission, under such rules and regulations as the
Commission may prescribe, a report of each accident so occurring of such
kinds or classes as the Commission may from time· to time designate.
Sec. 45 (a) The Commission shall have power to provide by proper
rules and regulations the time within which all railroad corporations shall
' furnish, after demand therefor, all cars, equipment and facilities necessary
for the handling of freight in car load and less than car load lots, the time
within which consignors or persons ordering cars shall load the same, and
the time within which consignees or persons to whom freight may be con­signed
shall unload · and discharge the same and receive freight from the
freight rooms, and to provide penalties to be paid for failure on the part
of the railroad corporations, consignors and consignees, to conform to such
rule. Charges for demurrage shall be uniform so that the same penalty
shall be paid by both shipper or consignee and railroad corporation for an
equal number of cars for each day for which demurrage is charged.
(b) The Commission shall also have power to provide the time within
which express packages shall be received, gathered, transported and deliv­ered
at destination, and the limits within which express packages shall . be
gathered and distributed and telegraph and telephone messages delivered
without extra charge.
(c) The Commission shall also have power to provide the time within
which baggage shall be received, transported, delivered and stored. The
Commission shall have power to enforce reasonable regulations for the
weighing of cars and freight offered for shipment over any line of railroad,
and to test the weights made by any railroad corporation and scales used
in weighing freight on cars.
Sec. 46. (a) The Commission shall have power, after hearing had w:,>011
its own motion or upon complaint, to ascertain and fix just and reasonable
standards, classifications, regulations, practices, measurements, or service to
be furnished, imposed, observed and followed by all electrical, gas and
water corporations; to ascertain and fix adequate and serviceable standards
for the measurement of quantlty, quality, pressure, initial voltage or other
coadltton p :;rtaining lo the supply of the product, commodity · or service
furnished or rendered by any such public service corporation; to prescribe
reasonable regulations for the examination and testing of such product, com­modity
or service, and for the measurement thereof; to establish reasonable •
ARIZONA CORPORATION COMMISSION 35
rules, regulations, spectttcattons and standards to secure the accuracy of
all meters and appliances for measurements; and to provide for the exam­ination
and testing of any and all appliances used for the measurement of
any product, commodity or service of any such public service corporation.
(b) The Commission and their officers and employees shall have
power ·to enter upon· any premises occupied by any public service corpo­ration,
for the purpose of making the examinations and tests and exercising
any of the other powers provided for in this Act, and to set up and use on
such premises any apparatus and appliances necessary therefor. The
agents and employees of such public service corporation shall have· the
right to be present. at the making of 'such examinations and tests.
(c) Any consumer or user of any product, commodity or service of
a public service corporation may have any appliance used in the measure­ment
thereof tested upon paying the fees fixed by the Commission. The
Commission shall establish and fix reasonable fees to be paid for testing such
appliances on the request of the consumer or user, the fee to be paid by the
consumer or user at the time of his request, but to be paid by the public
service corporation and repaid to the consumer or user if the appliance is
found defective or incorrect to the disadvantage of the consumer or user,
under such rules and regulations as may be prescribed by the Commission.
Sec. 47. The Commission shall have power to ascertain the value
of the property of every public service corporation in this State, or . doing
or transacting business in this State, and every fact which in its judgment
may -or does have any bearing on such value. The Commission shall
have power to make revaluations from time to time and to ascertain all new
constructions, extensions and additions to the property of every public
service corporation.
Sec. 48. The Commission shall have power to establish a system of
accounts to be kept by the public service corporations subject to its
jurisdiction, or to classify said public service corporations and to establish
a system of accounts for each class, and to prescribe the manner in which
suca accounts shall be kept. It may also in its discretion prescribe the
forms of accounts, records and memoranda to be kept by such public service
corporations, including the accounts, records and memoranda of the move­ment
of traffic as well as the receipts and expenditures of moneys, and
any other forms, records and memoranda which in the judgment of the
Commission may be necessary to carry out any of the provisions of this
Act.
The system of accounts established by the Commission and the forms
of accounts, records and memoranda prescribed by it shall not be tnoon­sistent
in the case of corporations subject to the provisions of the act of
Congress entitled, "An Act to Regulate Commerce," approved February
fourth, eighteen hundred and eighty-seven, and the acts amendatory thereof
and supplementary thereto, with the system and forms from . time to time
established for such corporations by the interstate Commerce Commission,
36 ARIZONA CORPORATION COMMISSION
but nothing herein contained shall affect the power of the Commission to
prescribe forms of accounts, records and memoranda covering information
in addition to that required by the Interstate Commerce Commission. The
Commission, may, after hearing had upon its own motion or upon com­plaint,
prescribe by order the accounts in which particular outlays and
receipts shall be entered, charged or credited.
Whereas, the Commission has prescribed the forms of accounts, records
or memoranda to be kept by any public service corporation for any of its
business, it shall thereafter be unlawful for such public service corporation
to keep any accounts, records or memoranda for such business other than
those so prescribed, or those prescribed by, or under the. authority of any
other state, or of the United States, excepting such ~ccounts, records or
memoranda as shall be explanatory of and supplemental to the accounts,
records or memoranda prescribed by the Commission.
Sec. 49. The Commission shall have power, after hearing, to require
' any or all public service· corporations to carry a proper and adequate
depreciation account in accordance with such rules, regulations and forms
of account as the Commission may prescribe. The Commission may, from
time to time, ascertain and determine and by order fix the proper and
adequate rates of depreciation of the several classes of property of each
public service corporation. Each public service corporation shall conform its
depreciation accounts to the rates so ascertained, determined and fixed, and
shall set aside the moneys so provided for out of earnings and carry the
same in a depreciation fund and expend such fund only for such purposes
and under such rules and regulations, both as to original expenditure and
subsequent replacement as the Commission _ may prescribe. The income
upon investments of moneys in such fund shall likewise be carried in
such fund.
Sec. 50. (a) No street railroad corporation, gas corporation, electrical
corporation, telephone corporation or water corporation shall henceforth
begin the construction of a street railroad, or of a line, plant or system,
or of any extension of such street railroad or line, plant, or system, without
having first obtained from the Commission a certificate that the present or
future public convenience and necessity require or will require such con­struction;
provided, that this section shall not be construed to require
any such corporation to secure such certificate for an extension within any
city, county or town within which it shall have theretofore lawfully com­menced
operations, or for an extension into territory either within or
without a city, county or town, contiguous to its street railroad or line,
plant or system, and not theretofore served by a public service corporation
of like character, or for an extension within or to territory already served
by it, necessary in the ordinary course of its business; provided, further,
that if any public service corporation, in constructing or extending its line,
plant or system, shall interfere or be about to interfere with the operation
of the line, plant or system of any other public service corporation, al-
ARIZONA CORPORATION COMMISSION 37
ready constructed, the Commission, on complaint of the public service
corporation claiming to be injuriously affected, may, after hearing, make
such order and prescribe such terms and conditions for the location of the
lines, plants, or systems affected as to it may seem just and reasonable.
(b) · No public service corporation. of a class specified in sub-section
(a) hereof shall henceforth "exercise any right or privilege under any fran­chise
or permit hereafter granted, or under any franchise or permit hereto­fore
granted but not heretofore actually exercised, or the exercise of which
have· been suspended for more than one year, without first having obtained
from the Commission . a certificate that public . convenience and necessity
require the exercise of. such right or privilege; provided, that when the
Commission· shall find, after hearing, that a public service corporation has
. heretofore begun actual construction work and is prosecuting such work,
in good faith, uninterruptedly and with reasonable diligence in proportion
to the magnitude of the undertaking, under any franchise or permit hereto­fore
granted but not heretofore actually exercised, such public service
corporation may proceed, under such rules and regulations as the Com­mission
may prescribe, to the completion of such work, and may, after
such completion, exercise such right or privilege; and provided, further, that
this section shall not be construed to validate any right or privilege
now invalid or hereafter becoming invalid under any law of this State.
(c) Before any certificate may issue,· under this section, a certified
copy of its articles of incorporation or charter, if the applicant· be a
corporatjon, shall be filed in the office of the Commission. Every applicant
for a certificate shall file in the office of the Commission such evidence
as shall be required by the Commission to show that such applicant has re­ceived
the required consent, franchise or permit of the proper county, city
and county, municipal or other public authority. The Commission shall
have power, after hearing, to issue said certificate, as prayed for, or to re­fuse
to issue the same, or to issue it for the construction of a portion only
of the contemplated street railroad, line, plant or system.: or extension
thereof, or for the partial exercise only of said right or privilege, and may
attach to the exercise of the rights granted by said certificate such terms
and conditions as in its judgment the public convenience and necessity may
require. If a public service corporation desires to exercise a right or privi­lege
under a franchise or permit which it contemplates securing, but which
bas not yet been granted to It, such public service corporation may apply .
to the Commission for an order preliminary to the issue of the certificate.
The Commission may thereupon make an order declaring that it will there­after,
upon application, under such rules and regulations as it may prescribe,
issue the desired certificate, upon such terms and conditions as it may
designate after the public service crporation has obtained the contem­plated
franchise or permit. Upon presentation to the Commission of
evidence satisfactory to it that such franchise or permit has been secured by
such public service corporation, the Commission shall thereupon issue such
certificate.
38 ARIZONA CORPORATION COMMISSION
Sec. 51. (a) . No railroad corporation, street railroad corporation, pipe
line corporation, gas corporation, electrical corporation, telephone corpora­tion,
telegraph corporation, or water corporation shall henceforth sell, lease,
assign, mortgage or otherwise dispose of or encumber the whole· or any part
of its railroad, street railroad, line, plant or system, necessary or useful in the
performance of its duties to the public, or any franchise or permit or any
right thereunder, nor by any means whatsoever, direct or indirect, merge
or consolidate its railroad, street railroad, line, plant or system, or fran­chises
or permits or any part thereof, with any other public service corpora­tion,
without having first secured from the Commission an order authorizing
it so to do. Every such sale, lease, assignment, mortgage, disposition, en­cumberance
(encumbrance) merger or consolidation made other than in
accordance with the order of the Commission authorizing the same shall be
void. The permission and approval of the Commlssion to the exercise of
a franchise or permit under Section fifty of this Act, or the sale, lease,
assignment, mortgage or other disposition or encumberance (encumbrance)
of a franchise or permit under this section shall not be construed to revive or
validate any lapsed or invalid franchise or permit, or to enlarge or add to
the powers or privileges contained in the grant. of any franchise or permit,
or to waive any forfeiture. Nothing in this sub-section contained shall be
construed to prevent the sale, lease, or other disposition by any public service
corporation of a class designated in this sub-section of property which is not
necessary or useful in the performance of its duties to the public, and any
sale of its property by such public service corporation shall be conclusively
presumed to have been of property which is not useful or necessary in
the performance of its duties to the public, as to any purchaser of such
property in good faith for value.
(b) No public service corporation shall hereafter purchase or acquire,
take or hold, any part of the capital stock of any other public service cor­poration,
organized or existing under or by virtue of the laws of this State,
without having been first authorized to do so by the Commlsston. Every
assignment, transfer, contract, or agreement for assignment or transfer
of any stock by or through any person or corporation to any corporation or
otherwise in violation of any of the provisions of this section shall be void
and of no effect, and no such transfer shall be made on the books of any
public service corporation. Nothing herein contained shall be construed to
prevent the holding of stock heretofore lawfully acquired.
Sec. 52. (a) The power of public service corporations to issue stocks
and stock certificates, and bonds, notes, and other evidences of indebtedness
and to create liens on their property situated within this State is a special
privilege, the right of supervision, regulation, restriction and control of
which is and shall continue to be vested in the State, and such power shall
be exercised as provided by law, and under such rules and regulations as the
Commission may prescribe.
(b) A public service corporation may issue stocks and stock certificates,
and bonds, notes and other evidences of indebtedness payable at periods
ARIZONA CORPORATION COMMISSION 39
'ot more than twelve months after the date thereof, for the following
purposes and no other, namely, for. the acquisition of property, or for
the construction, completion, extension or improvement of its facilities,
or for the improvement or maintenance of its service, or for the discharge
or lawful refunding of its obligations or for the reimbursement of moneys
actually expended from income or from any other. moneys in the treasury
of the public service corporation not secured by or obtained from the issue
of stocks or stock certificates, or bonds, notes or other evidence of indebt­edness
of such public service corporation, within. five years next prior to
the filing. of an application with the Commission for the required author­ization,
for any of the aforesaid purposes except maintenance of service and
replacements, in cases where the applicant shall have kept its accounts and
vouchers for such expenditures in such manner as to enable the Commission
·to ascertain the amount 'of moneys so expended and the purpose for which
such expenditure was made; provided, that such public service corporation,
in additton to the other requirements of law, shall first have secured trom
the Commission an order authorizing such issue· and stating the amount
thereof and the purpose or purposes to which the issue or the. proceeds
thereof are to be applied, and that, in the opinion of the Commission, the
money, property -or labor to be procured or paid for by such issue is rea­sonably
required for the purpose or purposes specified in the order, and
that, except as otherwise permitted ·in the order in the case of bonds, notes
or other evidences of indebtedness, such purpose or purposes are not, in
Whole or in. part, reasonably chargeable to operative expenses or to income.
To enable it to determine whether it will issue such order, the Commission
shall hold a hearing and may make such additional inquiry or investigation,
and examine such witnesses, books, papers, documents and contracts and
require the filing of such data as it may deem of assistance. The Com­mission
may by its order grant permission for the issue of such stocks or
stock certificates; or bonds, notes; or other evidences of .indebtedness in
the amount applied for, or in a lesser amount, or not at all, and may attach
to the exercise of its permission such condition or conditions ·as it may
deem reasonable and necessary. The Commission may authorize issues
of bonds, notes or other evidences of indebtedness, less than, equivalent to
or greater than the authorized or subscribed capital stock of a public service
corporation, and the provisions of the general law of this State, in so far
as they contain inhibitions against the creation by corporations of Indebt­edness,
evidenced by bonds, notes or otherwise, in excess of their total
authorized or subscribed· capital stock shall have no application to public
service corporations. No public service corporation shall, without the con·
sent of the Commission, apply the issue of any stock, or stock certificate,
or bond, note or other evidence of indebtedness, or any part thereof, or
any proceeds thereof, to any purpose not specified in the Commission's order,
or to any purpose specified in the Commission's order in excess of the
amount authorized for such purpose, or issue or dispose of the · same on
any terms less favorable than those specified in such order, or a modifica­tion
thereof. A public service corporation may issue notes, for proper
40 ARIZONA CORPORATION COMMISSION
purposes, and not in violation of any provision of this Act or any· other
act, payable at periods of not more than twelve months after the date
of issuance of the same, without the consent of the Commission, but no
such note shall, in whole or in part, be refunded by any issue of stocks
or stock certificates, or of bonds, notes of any term or character or any
other evidence of indebtedness, without the consent of the Commission.
The Commission shall have no power to authorize the capitalization of
the right to be a corporation, or to authorize the capitalization of any
franchise or permit whatsoever, or the. right to own, operate or enjoy any
such franchise or permit, in excess of the amount (exclusive of any tax
or annual charge) actually paid to the State or to a political subdivision
thereof as the consideration for the grant of such franchise, permit or right;
nor shall any contract for consolidation or lease be capitalized, nor shall
any public service corporation hereafter issue any bonds, notes or other
evidences of indebtedness against or as a lien upon any contract for
consolidation or merger.
{c) The Commission shall have the power to require public service
corporations to account for the disposition of the proceeds of all sales of
stocks and stock certificates, and bonds, notes and other evidences of
indebtedness, in such form and detail as it may deem advisable, and to estab­lish
such rules and regulations as it may deem reasonable and necessary
to insure the disposition of such proceeds for the purpose or purposes
specified in its order.
( d) All stock and every stock certificate, and every bond, note or
other evidence of indebtedness, of a public service corporation, issued with­out
an order of the Commission authorizing the same then in effect shall
be void, and likewise all stock and every stock certificate, and every bond,
note or other evidence of indebtedness, of a public service corporation, issued
with the authorization of the Commission, but not conforming in its provi­sions
to the provisions, if any, which it is required by the order of authoriza­tion
of the Commission to contain, shall be void; but no failure in any other
respect to comply with the terms or conditions of the order of authorization
of the Commission shall render void any stock or stock certificate, or any
bond, note or other evidence of indebtedness, except as to a corporation or
person taking the same otherwise than in good faith and for value and
without actual notice.
(e) Every public service corporation which, directly or indirectly,
issues or causes to be issued, any stock or stock certificate, or bond, note
or other evidence of indebtedness, in non-conformity with the order of the
Commission authorizing the ·same, or contrary to the provisions of this
Act, or of the Constitution of this State, or which applies the
proceeds from the sale thereof, or any part thereof, to any purpose other
than the purpose or purposes specified in the Commission's order, as herein
provided, or to. any purpose specified in the Commission's order in excess
of the amount in said order authorized for such purpose, is subject to a
penalty of not less than five hundred dollars nor more than twenty thousand
dollars for each offense.
ARIZONA CORPORATION COMMISSION 41
(f) Every officer, agent or employee of a public service corporation,
and every other person who knowingly authorizes, directs, aids in, issues
or executes, or causes to be issued or executed, any stock or stock certificate,
or bond, note or other evidence of indebtedness, in non-conformity with
the order of the Commission authorizing the same, or contrary to the pro­visions
of this Act, or of the Constitution of this State, or who in any pro­ceeding
before the Commission, knowingly makes ·any false statement or
representation or with knowledge of its falsity files or causes to be filed with
the Commission any false statement or representatin, which said statement
or representation so made, filed or caused to be filed may tend in any way
·to influence the Commission to make an order authorizing the issue of any
stock or stock certificate, or any bond, note or other evidence of indebt­edness,
or which results in procuring from the Commission the making of
any such order, or who, with knowledge that any false statement or repre­sentation
was made to the Commission, in any proceeding, tending in any
way to influence the Commission to make such order, issues or executes or
negotiates, or causes to be issued', executed or negotiated any such stock or
stock certificate,. or bond, note or other evidence of indebtedness, or who, ·
directly or indirectly, knowingly applies or causes or assists to be applied
the proceeds of any part thereof, from the sale of any stock or stock certi­ficate,
or bond, note or other evidence of indebtedness, to any purpose not
specified in the Commission's order, or to any purpose specified in the
Commission's order in excess of the amount authorized for such purpose,
or who, with knowledge that any stock or stock certificate, or bond, note or
other evidence of indebtedness, has been issued or executed in violation of
any of the provisions of this Act, negotiates, or causes the same to be nego­tiated,
shall be guilty of a felony, and on conviction thereof, shall be impris­oned
in the State penitentiary for a term not less than two years and not
more than ten years.
(g) No privisions (provisions) of this Act, and no deed or act done
or performed under or in connection therewith, shall be held or construed
to obligate the State of Arizona to . pay or guarantee, in anY: manner what­soever,
any stock or stock certificate, or bond, note or other evidence of
indebtedness authorized, issued or executed under the provisions of this Act.
(h) All stocks and stock certificates, and bonds, notes, and other evi­dence
of. indebtedness issued by any public service corporation after this
Act takes effect, upon the authority of any articles of incorporation or
amendments thereto or vote of the stockholders or directors filed, taken
or had, or other proceeding taken or had, previous to the taking effect
of this Act, shall be void, unless an order of the Commission authorizing the
issue of such stocks or stock certificates, or bonds, notes or other evidences
of indebtedness, shall have been obtained from the Commission prior to
such issue. The Commission may by its order impose such condition or
conditions as it may deem reasonable and necessary.
Sec. 53. All hearings and investigations before the Commission or any
Commissioner shall· be governed by this Act and by rules of practice and
42 ARIZONA CORPORATION COMMISSION
procedure to be adopted by the Commission and in conduct thereof neither
the Commission nor any Commissioner shall be bound by the technical rules
of. evidence. No informality in any proceeding or in the manner of taking
testimony before the Commission or any Commissioner shall invalidate any
order, decision, rule or regulation made, approved or confirmed by the
Commission.
Sec. 54. The Commission and each Commissioner shall have power
to issue writs or summons, subpoenas, warrants of attachment, warrants of
commitment and all necessary process in proceedings for contempt, in the
like manner and to the same extent as courts of record. The process issued
by the Commission, or any Commissioner shall extend to all parts of the
State and may be served by any person authorized to serve process of courts
of record, or by any person designated for that purpose by the Commission
or a Commissioner. The person executing any such processes shall receive
such compensation as may be allowed.by l~w.
Sec. 55. (a) The Commission and each Commissioner shall have
power to administer oaths, certify to all official acts, and to issue subpoenas
for the attendance of witnesses and the production of papers, waybills, books,
accounts, documents, and testimoney (testimony) in an. inquiry, investiga­tion,
hearing or proceeding in any part of the State. Each witness who shall
appear, by order of the Commission or a Commissioner, shall receive for his
attendance the same fees allowed by law to a witness in civil cases, which
amount shall be paid by the party at whose request such witness is
subpoenaed. When any witness who has not ·been required to attend at
the request of any party shall be subpoenaed by the Commission, his fees
shall be paid from the fund appropriated for the use of the Commission
in the same manner as other expenses of the Commission are paid. Any
witness subpoenaed except one whose fees may be paid from the funds of the
Commission, may, at the time of service, demand the fee to which he is
entitled for travel to and from the place at which he is required to appear,
and one day's attendance. If such witness demands such fees at the time
of service, and they are not at that time paid or tendered, he shall not be
required to attend before the Commission, or Commissioner, as directed
in the subpoena .. All fees to which any witness is entitled under the provi­sions
of this section may be collected by action therefor instituted by the
person to whom such fees are payable.
No witness furnished with free transportation shall receive mileage
for the distance he may have traveled on such free transportation.
(b) The Superior Court in and for the county in which any inquiry,
investigation, hearing or proceeding may be held by the Commission; or
any Commissioner, shall have the power to compel the attendance of
witnesses, the giving of testimony, and the production of papers, including
way bills, books, account and documents, as required by any subpoena issued
by .the Commission or any Commissioner. The Commission or the Commis­sioner
before whom the testimony is to be given or produced, in case of the
ARIZONA CORPORATION COMMISSION 43
refusal of any witness to attend or . testify or produce any papers required
by such subpoena, may report to the Superior Court in and for the· county
in which the proceeding is pending, by petition, setting forth that due notice
has been given of the time and place of attendance of said witness, or the
production of said papers, and that the witness has been summoned in the
manner prescribed in this Act, and that the witness has failed and refused
to attend or produce the papers required by the subpoena, before the Com­mission
or Commissioner, in the cause or proceeding· named in the notice
and subpoena, or has refused to answer questions propounded to him in
the course of such proceeding, and ask an order of said court, compelling
the witness to attend and testify or produce said papers before the Com­mission.
The court, upon the petition of the Commission or such .Commis­sioner,
shall enter an order directing the witness to appear before the
court at a time and place to be fixed by the court in such order, the time
to be not more than ten days from the date of the order, and then and there
show cause why he has not attended and testified or produced said papers
before the Commission. A copy of said order shall be served upon said
v'rtness, If it· shall appear to the court that said subpoena was regularly
is:~ued by . the Commission or a Commissioner, the court shall thereupon
enter an order that said witness appear before the Commission or said
Commissioner at the time and place fixed in said order, and testify or
Produce the required· papers, and upon failure to obey said order, saici
witness shall be dealt with as for contempt of court. 'l'he remedy provided
in this sub-section is cumulative and shall not be construed to impair or
interfere with the power of the Commission or a Commissioner to enforce
the attendance of witnesses and the production of papers, and to punish for
contempt in the same manner and to the same extent as courts of record.
(c) The Commission or any Commissioner or any party may, in any
investigation or hearing before the Commission, cause the deposition of
Witnesses residing within or without the State to be taken in the manner
Prescribed by law for like deposition in civil actions in the Superior
Courts of this State, and to that end may compel the attendance of witnesses
and the production of books, way bills, documents, papers and accounts.
(d) No person shall be excused from testifying or from producing any
book, way bill, document, paper or account in any investigation or inquiry
by or hearing before the Commission or any ·Commissioner, when ordered
to do so, upon the ground that the testimony or evidence, book, way bill, docu­ment,
paper or account required of him may tend to incriminate him or sub­ject
him to penalty or forfeiture, but no person shall be prosecuted, punished
or subjected to any penalty or forfeiture for or on account of any act,
transaction, matter or thing concerning which he shall, under oath have
testified or produced documentary evidence; provided, that no person so
testifying shall be exempt from prosecution or punishment for any perjury
committed by him in his testimony. Nothing herein contained shall be con- ,
struecl as in any manner giving to any public service corporation immunity
of any kind.
44 ARIZONA CORPORATION COMMISSION
Sec. 56. (a) Copies of all official documents and orders filed or de­posited
according to law in the office of the Commission, certified by a
Commissioner, or by the secretary under the official seal of the Commission
to be true copies of the original, shall be evidence in a like manner as the
originals.
(b) ·Every order, authorization or certificate, issued or approved by·
the Commission under any provision of Sections 38, 39, 40, 41, 43, 50, 51 or 52,
of this Act, shall be in writing and entered on the records of the Com­mission.
Any such order, authorization or certificate, or a copy thereof, or
a copy of the record of any such order, authorization or certificate, certified
by a Commissioner, or by the secretary under the official seal of the Com­mission
to-. be a true copy of the original order, authorization, certificate or
entry, may be recorded in the office of the county recorder of any county
in which is located the principal place of business of any public service
corporation affected thereby, or in which is situated any property of any
such public service corporation, and such record shall impart notice of its
provisions to all persons. A certificate under the seal of the Commission
that any such order, authorization or certificate has not been modified,
stayed, suspended or revoked may also be recorded in the same offices in
the same manner and with like effect.
Sec. 57. The Commission shall charge and collect the following fees:
For copies of papers and records not required to be certified or otherwise
authenticated by the Commission, fifteen cents for each folio; for certified
copies of official documents and orders filed in its o·ffice, twenty cents for
each folio and. two dollars for every certificate under seal affixed thereto;
for certifying a copy of any report made by a· public service corporation,
two dollars; for each certified copy of the annual report of the Commission,
three dollars; for certified copies of evidence and proceedings before the
Commission, fifteen cents for each folio; for certificate authorizing an
issue of bonds, or other evidences of indebtedness, one dollar for each
thousand dollars of the face value of the authorized issue or fraction thereof
up to one million dollars, and fifty cents for each one thousand dollars
over one million dollars and up to ten million dollars, and twenty-five cents
for each one thousand dollars over ten millton dollars, with a minimum fee
in any case of Thirty-five Dollars ($35.00); provided, that no fees shall be
required when such issue is made for the purpose of guaranteeing, taking
over, refunding, discharging or retiring any bond, note or other evidence of
indebtedness up to the amount of the issue guaranteed, taken over, re­funded,
discharged or retired. No fee shall be charged or collected for
copies of papers, records, or official documents, furnished to public officers
for use in their official capacity, or for the annual reports of the Com­mission,
in the ordinary course of distribution, but; the Commission may fix
reasonable charges for publications issued under its authority. All fees
charged and collected under this section shall be paid, at least once each
week, accompanied by a detailed statement thereof into the treasury of
the State to the credit of the general fund.
ARIZONA CORPORATION COMMISSION 45
Sec. 58. The Commission, each commissioner and each officer and
person employed by the Commission shall have the right, at any and all
times, to inspect the accounts, books, papers and documents of any public
service corporation, and the Commission, each commissioner and any officer
of the Commission or any employee authorized to administer oaths shall
have power to examine under oath any officer, agent, or employee of such
Public service corporation in ·relation to the business and affairs of said
public service corporation; provided, that any person other than a com­missioner
or an officer of the Commission demanding such inspection shall
• Produce under the hand and seal of the Commission his authority to make
such Inspectlon ; and, provided, further, that a written record of the testi­mony
or statement so given under oath shall be made and filed with the
Commission.
' Sec. 59. The Commission may require, by order served on any public
corporation in the manner provided herein for the service of orders, the pro­duction
within this State at any such time and place as it may designate, of
any books, accounts, papers, or records kept by said public service corpo­ration
in any office or place without this State, or, at its option, verified
copies in lieu thereof, so that an examination thereof may be made by
the Commission or under its direction. -
se·c. 60. Complaint may be made by the Commission of its own motion
or by any corporation or persons, chamber of commerce, board of trade,
or any civic, commercial, mercantile, traffic, agricultural or manufacturing
association or organization or any body politic or municipal corporation,
by petition or complaint in writing, setting forth any act or thing done or
omitted to be done by any public service corporation including any rules,
regulation or charges heretofore established or fixed by or for any public
service corporation, in· violation, or claimed to be in violation, of any
Provision of law or of any order or rule of the Commission; provided, that
no complaint shall be entertained by the Commission, except upon its own
motion, as to the reasonableness of any rates or charges of any gas,
electrical, water, or telephone corporation, unless the same be signed by the
mayor or a majority of the council, Commission, or other legislative body
of the city or town, if any, within which the alleged violation occurred. or
not less than twenty-five consumers or purchaser or prospective consumer
or purchasers, of such gas, electricity, water or telephone service. All
matters upon which complaint may be founded may be joined in one hear­ing,
and no motion shall be entertained against a complaint for misjoinder
of causes of action or grievances or misjoinder or non-joinder of parties
and in any review by the court of orders or decisions of the Commission
the same rule shall apply with regard to the· joinder of causes and
Parties as herein provided. The Commission shall not be required to
dismiss any complaint because of the absence of direct damage to the
complainant. Upon the filing of a complaint, the Commission shall cause
a copy thereof to be served upon the corporation or person complained of.
46 ARIZONA CORPORATION COMMISSION
All public service corporations, domestic or foreign, doing, transacting or
soliciting any business in this State, shall appoint a bona fide resident of
this State, who has been a resident of this State for at least three years, its
agent, upon whom all notices, orders, decrees, charges and processes, in­cluding
service of summons, may be served, and when so served, shall be
taken and held to be lawful personal service on such corporation. Such
appointment of agent shall be filed in the office of the Corporation Com­mission.
Service may likewise be had in accordance with the ·provisions
of the general laws of this State, and may be made personally or by mailing
in a sealed envelope, registered, with postage prepaid. No irregularity re- •
garding service shall be used by any public service corporation as a ground
of excuse or defense. The Commission shall fix the time when and· the
place where a hearing 'will be had upon the complaint and shall serve notice
thereof, not less than ten days before the time set for such hearing, unless
the Commission shall find that the public necessity requires that such
hearing be held at an earlier date.
Sec. 61. (a) At the time fixed for any hearing before the Commission
or a Commissioner, or the time to which the same may have been continued,
the complainant and the corporation. or persons complained of, and such
corporations or persons as the Commission may allow to intervene, shall
be entitled to be heard and to introduce evidence. The Commission shall
issue process to enforce the attendance of all necessary witnesses. · After
the conclusion of the hearing, the Commission shall make and file its order,
containing its decision. A copy of such order, certified under the seal
of the Commission, shall be served upon the corporation or person complained
of, or his or its attorney. .Said order shall, of its own force, take effect
and become operative twenty days after the service thereof, except as
otherwise provided, and shall continue in force either for a period which
may be designated therein or until changed or abrogated by the Commission.
If an order cannot in the judgment of the Commisston, .be complied with
within twenty days, the Commission may grant and prescribe such addi­tional
time as in its judgment. is reasonably necessary to comply with
the order, and may on application and for good cause shown, extend the
time for compliance fixed in its order. A full and complete record of all
proceedings had before the Commission or any Commissioner on any formal
hearing had, and all testimony shall be taken down by a reporter appointed
by the Commission, and the parties shall be entitled to be heard in person
or by attorney.
Sec. 62. Any public service corporation shall have a right to com­plain
on any of the grounds upon which complaints are allowed to be filed
by other parties, and the same procedure . shall be adopted and followed
as in other cases except that the complaint may be heard, ex parte by the .
Commission, or may be served upon any parties designated by the Com-mission.
·
Sec. 63. (a) No public service corporation shall raise any rate, fare,
ARIZONA CORPORATION COMMISSION 47
toll, rental or charge or so alter any classification, contract, practice, rule
or regulation as to result in an increase in any rate, fare, toll, rental or
charge, under any circunstances (circumstances) whatsoever, except upon
a showing before the Commission and a finding by the Commission that
such· increase is justified. ·
(b). Whenever there shall be filed with the Commission any schedule
stating an individual or joint rate, fare, toll, rental, charge, classlflcatlon,'
contract, practice, rule or regulation, not increasing or resulting in an in·
crease in any rate, fare, toll, rental or charge, the Commission shall have
Power, and it is hereby given authority, either upon complaint or upon its
own initiative without complaint, at once, and if it so orders, without answer
or other formal pleadings, by the interested public service corporation or
corporations, but upon reasonable notice, to enter upon a hearing concern­ing
the propriety of such rate, fare, toll, rental, charge, classification, con­tract,
practice, rule or regulation, and pending the hearing and the decision
thereon such rate, fare, toll, rental, charge, classification, contract, practice,
rule or regulation shall not go into effect; provided, that the period of sus­pension
of such rate, fare, toll, rental, charge, classification, contract, prac­tice,
rule or regulation shall not extend beyond one hundred and twenty
days beyond the time when such rate, fare, toll, rental, charge, classification,
contract, practice, rule or regulation would otherwise go into effect unless
the Commission, in its discretion, extends the period of suspension for a
further period not exceeding six. months; On such h